- Finance Minister Nirmala Sitharaman announced Rare Earth Corridors in four Indian states in Budget 2026
- The corridors will focus on transforming coastal monazite sands into high-tech manufacturing hubs
- India aims to reduce dependence on China, which controls 85% of global rare earth mineral supply
In a strategic move to decouple from global supply chain vulnerabilities, Finance Minister Nirmala Sitharaman, in her Budget 2026 speech, has announced the establishment of Rare Earth Corridors across Andhra Pradesh, Kerala, Odisha, and Tamil Nadu.
This move will aim to transform India's coastal 'monazite' beach sands into a powerhouse for high-tech manufacturing and tech, as the nation looks to reduce reliance on China imports.
China, after all, has tight control on world's supply of rare earth minerals. They control nearly 85% of the global output. India, therefore, is looking to drive up its own rare earth capabilities in order to capture the China Plus One strategy.
Rare earths are a key mineral which has uses in defence, green energy and electronics, making it a strategically important sector for a nation like India.
Why Rare Earths Matter
- Green Energy: High-performance magnets for Electric Vehicle (EV) motors and wind turbines.
- Defense: Guidance systems for missiles, radar technology, and jet engines.
- Electronics: Essential components in semiconductors, smartphones, and MRI machines.
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