Finance Minister Nirmala Sitharaman
Credit: PTI photo
Union Finance Minister Nirmala Sitharaman on Sunday proposed 'rare earth corridors' in mineral rich states including Odisha, Andhra Pradesh, Tamil Nadu and Kerala in the Union Budget 2026.
Presenting her ninth consecutive Budget in the Parliament, Sitharaman said rare earth corridors will promote mining, processing, research and manufacturing.
"A scheme for rare earth permanent magnets was launched in 2025 November. We now propose to support mineral-rich states such as Odisha, Kerala, Andhra Pradesh and Tamil Nadu to establish rare earth corridors to promote mining, processing, research and manufacturing," Sitharaman said.
In November 2025, the Union Cabinet, led by Prime Minister Narendra Modi, approved the 'Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets' with an outlay of Rs 7,280 crore.
This was the first time such an initiative was taken, under which 6,000 Metric Tons per Annum (MTPA) of integrated Rare Earth Permanent Magnet (REPM) manufacturing in India is to take place. This is aimed at self reliance and positioning India as a key player in the global REPM market.
Sitharaman has proposed to push India's biopharma sector through a Biopharma Shakti programme, with an allocation of Rs 10,000 crore over the next five years.
Among other announcements, she proposed scaling up manufacturing in strategic and frontier sectors and developing city economic regions.
She stressed that the government led by Prime Minister Narendra Modi has chosen action over ambivalence, and reform over rhetoric, keeping Atmanirbharta or self-reliance as a lodestar.
"Since we assumed office 12 years ago, India's economic trajectory has been marked by stability, fiscal discipline, sustained growth and moderate inflation," she said.