Finance Minister Nirmala Sitharaman has proposed to support mineral-rich states—specifically Odisha, Kerala, Andhra Pradesh, and Tamil Nadu—in the development of dedicated rare earth corridors.
This follows the November 2025 launch of a specialised scheme for rare earth permanent magnets (REPM).
With a financial outlay of Rs 7,280 crore, the “Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet” intends to build an integrated manufacturing capacity of 6,000 metric tonnes per annum (MTPA), spanning the entire production chain from rare-earth oxides to finished magnets.
“We now propose to support the mineral-rich states of Odisha, Kerala, Andhra Pradesh and Tamil Nadu to establish dedicated rare earth corridors,” announced Nirmala Sitharaman, presenting the Union Budget for 2026-27.
To bolster existing rare earth capabilities, the Finance Minister proposed to establish high-tech tool rooms by central public sector enterprises at two strategic locations. These will function as digitally enabled automation service bureaus, facilitating the local design, testing, and large-scale manufacturing of high-precision components at reduced costs.
Additionally, the FM also proposed a new scheme aimed at enhancing construction and infrastructure equipment (CIE) to drive the domestic manufacturing of high-value and technologically advanced CIE.
In her budget speech, the FM also proposed to spend Rs 40,000 crore for electronics components manufacturing.
Highlighting the success of India’s Semiconductor Mission 1.0 in expanding the country’s semiconductor capabilities, Sitharaman announced the transition to Semiconductor Mission 2.0. This next phase will focus on producing essential equipment and materials, developing a comprehensive stack of Indian Intellectual Property (IP), and fortifying global supply chains.
Finance Minister Sitharaman presented her record ninth consecutive Union budget today in the Parliament.
On Thursday, Union Finance Minister Nirmala Sitharaman tabled the Economic Survey of India in Parliament for the financial year 2025-26.
The tabling of the Economic Survey ahead of the Budget follows the long-standing tradition of outlining the state of the economy before detailing future fiscal plans. The document provided a comprehensive, data-backed review of the economy’s performance over the previous year and offers a broad roadmap for future policy direction. As the government’s flagship annual report, it reviews key economic developments over the past 12 months.
India’s real GDP growth for 2026-27 is projected in the range of 6.8-7.2 per cent, reflecting sustained medium-term growth capacity amid a challenging global environment.
India recorded the lowest inflation rate since the beginning of the CPI series, with April-December 2025 average headline inflation coming in at 1.7%, contributing to a general disinflationary trend in food and fuel prices. Looking ahead, the inflation outlook remains benign, supported by favourable supply-side conditions and the gradual pass-through of GST rate rationalisation.
