Union Budget 2026: Poll-Bound Kerala, TN among 4 states To Have Rare Earth Corridors

New Delhi: Finance Minister Nirmala Sitharaman announced a rare earth metals package for four states, Odisha, Kerala, Tamil Nadu and Andhra Pradesh during her speech presenting the Union Budget 2026 today. Out of these, Kerala and Tamil Nadu are set to have Assembly elections in 2026.

The scheme for rare earth permanent magnets was launched in 2025 November. “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. To enhance domestic chemical production and reduce import dependency, we will launch a scheme to support states in establishing three dedicated chemical arks through challenge route on a cluster-based plug-and-play model,” the Finance Minister said. 

In November 2025, the Union government had approved a scheme to manufacture Rare Earth Permanent Magnets (REPM) in India, with a financial outlay of ₹7,280 crore, for the very first time, in attempt to reduce India's dependence on China for rare-earth minerals.

All eyes are on the historic central hall of Parliament as Nirmala Sitharaman is presenting the Union Budget for the 2026-27 financial year in the Lok Sabha today (February 1), marking a rare departure from tradition as it will be the first time the annual Budget is tabled on a Sunday. This landmark session continues to steer India’s journey toward the 'Viksit Bharat' 2047 goal.