Budget 2026: Eye on rare earth, Centre announces support for critical minerals corridors in Odisha, Kerala, Tamil Nadu

Budget 2026: Union Finance Minister Nirmala Sitharaman proposed to support the mineral-rich states of Odisha, Kerala, Tamil Nadu, and more in establishing dedicated rare-earth corridors. The Union Cabinet, headed by Prime Minister Narendra Modi, on Sunday approved the Union Budget 2026-27 following a meeting in Parliament.

Budget 2026: Union Finance Minister Nirmala Sitharaman made history on Sunday as she presented her 9th consecutive Union Budget. This achievement makes her the first Finance Minister in India to deliver nine consecutive budgets, surpassing her own record. Meanwhile, in her presentation, the Finance Minister proposed to support the mineral-rich states of Odisha, Kerala, Tamil Nadu, and more in establishing dedicated rare-earth corridors.

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"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," said FM Sitharaman. 

National Critical Mission 

Earlier, the government had launched the National Critical Mineral Mission (NCMM) in 2025 to establish a robust framework for self-reliance in the critical mineral sector. According to a statement of the Ministry of Mines, dated April 9, 2025, under this mission, the Geological Survey of India (GSI) was tasked to conduct 1,200 exploration projects from 2024-25 to 2030-31.

What are critical minerals? 

Critical minerals are essential for economic development and national security. They are indispensable for clean energy technologies, high-tech electronics, transport, telecommunications, and defence. They are vital to power the global transition to a low-carbon emissions economy, according to a release of Energy and Environment, dated September 6, 2025. 

Countries identify minerals critical for them based on their national priorities. In 2023, the Ministry of Mines released a list of 30 critical minerals for India. 

What are the uses of critical minerals?

According to the Ministry of Mines, critical minerals are essential components of various clean energy technologies and industries. They can be used across various sectors, including:
1- Solar energy
2- Wind energy
3- Electric vehicles (EVs)
4- Energy storage 

Cabinet approves Union Budget 2026-27

The Union Cabinet, headed by Prime Minister Narendra Modi, approved the Union Budget 2026-27 following a meeting in Parliament.

The Budget session will span 30 sittings over 65 days, concluding on April 2. The two Houses will adjourn for a recess on February 13 and reconvene on March 9 to enable the Standing Committees to examine the Demands for Grants of various ministries and departments. 

This budget is immensely significant as a few days ago, India and the European Union (EU) finalised negotiations on a Free Trade Agreement (FTA), and it was called the "mother of all deals" that aims to deepen cooperation in innovation, technology, and trade. The pact is expected to come into force in 2027.

(with ANI inputs)