The Union Budget 2026–27 has announced the creation of Dedicated Rare Earth Corridors in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu to promote mining, processing, research, and manufacturing. These initiatives align with the national priorities of Atmanirbhar Bharat, Net Zero 2070, and Viksit Bharat @2047, while positioning India as a key player in global advanced-materials value chains.

Rare Earth Permanent Magnets (REPMs) are among the strongest types of permanent magnets, known for their high magnetic strength and stability. Their compact size and powerful performance make them indispensable for advanced engineering applications such as electric vehicle motors, wind turbine generators, consumer and industrial electronics, aerospace systems, defence equipment, and precision sensors.

As India expands its manufacturing footprint in clean energy, advanced mobility, and strategic sectors, a reliable domestic supply of REPMs is critical. It not only reduces import dependence but also strengthens India’s competitiveness in global value chains for advanced materials.

The Union Budget 2026–27 has placed strong emphasis on building India’s self-reliance in critical materials by complementing the recently approved Rare Earth Permanent Magnet (REPM) Manufacturing Scheme with new corridor-based initiatives. Together, these measures create a comprehensive framework for strengthening domestic capacity, reducing import dependence, and positioning India as a global leader in advanced materials.