India charts rare earth roadmap with manufacturing push and dedicated corridors

New Delhi: India is stepping up its strategy to secure critical minerals and advanced materials, with the Union Budget 2026–27 announcing the creation of Dedicated Rare Earth Corridors across Odisha, Kerala, Andhra Pradesh and Tamil Nadu. Combined with a ₹7,280 crore Rare Earth Permanent Magnet (REPM) Manufacturing Scheme approved in November 2025, the initiatives mark a decisive move towards self-reliance in materials vital for electric vehicles, renewable energy, electronics, aerospace and defence.
The measures are aligned with the national priorities of Atmanirbhar Bharat, Net Zero 2070 and Viksit Bharat @2047, while positioning India as a credible player in global advanced-materials value chains. Complementing the manufacturing scheme, the Union Budget 2026–27 announced Dedicated Rare Earth Corridors in four mineral-rich states. These corridors will focus on mining, processing, research and manufacturing, creating integrated hubs that link raw material extraction with high-value production and innovation.
The corridor initiative builds on the existing footprint of IREL (India) Limited, which operates under the Department of Atomic Energy. IREL already runs a rare-earth extraction plant in Odisha and a refining unit at Aluva in Kerala, alongside its large-scale processing of strategic minerals. Integrating these facilities with new corridor-based investments is expected to accelerate domestic capacity, foster research and development, and generate regional economic growth.