Bhubaneswar: In a major push to reduce dependence on foreign countries for critical minerals, Finance Minister Nirmala Sitharaman announced the establishment of dedicated rare earth corridors in four states – Tamil Nadu, Kerala, Odisha, and Andhra Pradesh.
This move is part of India’s broader strategy to achieve self-reliance, or ‘Atmanirbhar Bharat’, and strengthen its position in the global semiconductor market.
“The scheme for rare earth permanent magnets was launched in November 2025. We now propose to support the mineral-rich states of Odisha, Kerala, Andhra Pradesh and Tamil Nadu to establish dedicated rare earth corridors to promote mining, processing, research and manufacturing,” the finance minister said in her Budget speech on Sunday
The corridors will focus on promoting mining, processing, research, and manufacturing of rare earth minerals, which are crucial for industries like defense, electronics, and renewable energy. This initiative is expected to significantly reduce India’s reliance on China, which currently controls around 85% of the global rare earth mineral supply.
Key Highlights:
– Rare Earth Corridors: Dedicated corridors in four states to promote mining, processing, and manufacturing of rare earth minerals
– Semiconductor Mission 2.0: Rs 40,000-crore outlay to boost domestic semiconductor production, focusing on equipment, materials, and Indian IP
– Self-Reliance Push: Part of India’s broader strategy to achieve Atmanirbhar Bharat and reduce dependence on foreign countries
