Union Finance Minister Nirmala Sitharaman announced a new plan in the 2026-27 Union Budget. She proposed support for Odisha, Kerala, Andhra Pradesh, and Tamil Nadu to build dedicated rare earth corridors. These corridors will focus on mining, processing, research, and manufacturing of rare earth permanent magnets. Ms. Sitharaman said in Lok Sabha, "A scheme for rare earth permanent magnets was launched in 2025. We now propose to support the mineral-rich states of Odisha, Kerala, Andhra Pradesh, and Tamil Nadu in establishing dedicated rare-earth corridors to promote mining, processing, research and manufacturing." This push aims to reduce India's dependence on China for rare-earth minerals. Tamil Nadu and Kerala, two of the four states, will also hold Assembly elections in 2026. In November 2025, the government approved a unique scheme to manufacture Rare Earth Permanent Magnets (REPM) in India. The plan includes a ₹7,280 crore financial outlay, with ₹6,450 crore as sales-linked incentives over five years and ₹750 crore as capital subsidy. The goal is to establish 6,000 metric tonnes per annum of REPM manufacturing capacity in the country. This bold step intends to boost India’s self-reliance in key minerals critical for modern technology and defense.