In Budget 2026, an important announcement has been made in the direction of self-reliant India regarding rare earth minerals. While presenting the budget in Parliament, Finance Minister Nirmala Sitharaman said that rare earth corridors will be established in mineral-rich states like Odisha, Kerala, Andhra Pradesh and Tamil Nadu.
Mining of rare minerals will become easier
Through these corridors, not only will mining of rare minerals become easier, but research and processing facilities will also be promoted. The government aims to strengthen domestic supply of minerals required for emerging sectors like electronics, electric vehicles (EV) and semiconductors.
There will be less dependence on China
At present, India imports rare minerals from China for a large part of its needs. In such a situation, this step can prove helpful in reducing import dependence on China and increasing self-reliance in strategic areas.
It is noteworthy that the Central Government had launched a special scheme for the development of rare minerals in the year November 2025. Now in Budget 2026, it has been proposed to further strengthen this scheme and provide financial and technical support to the states to establish mineral corridors.
Big announcement for electronics components too
The central government wants to increase electronics component manufacturing in the country. A big announcement has been made for this sector in Budget 2026. Finance Minister Nirmala Sitharaman said that the investment in Electronics Component Manufacturing Scheme has already doubled the target. Making a big announcement in Budget 2026, it has been proposed to increase the expenditure in Electronics Manufacturing Scheme to Rs 40 thousand crore.
