India charts rare earth corridors to break China’s grip on critical minerals

Finance Minister Nirmala Sitharaman announced the creation of specialised rare earth corridors in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu. The initiative aims to boost mining, processing, research, and manufacturing, reducing dependence on imports and strengthening India’s critical minerals capabilities

New Delhi: Finance Minister Nirmala Sitharaman on Sunday unveiled a significant initiative designed to reshape India’s engagement with critical minerals.

FM Sitharaman declared that the government will extend support to the mineral-rich states of Odisha, Kerala, Andhra Pradesh, and Tamil Nadu in establishing specialised rare earth corridors. These corridors are envisioned as comprehensive hubs that will encompass the entire value chain of rare earth development—spanning mining, processing, research, and advanced manufacturing.

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This announcement builds upon the rare earth permanent magnet scheme introduced in November 2025, marking a deliberate step towards strengthening India’s domestic capabilities in a sector long dominated by imports.

The Cabinet approved the scheme in November to promote the manufacturing of Sintered Rare Earth Permanent Magnets in the country with an investment of Rs 7,280 crore.

This first-of-its-kind initiative aims to establish 6,000 metric tons per annum of integrated rare earth permanent magnet (REPM) manufacturing capacity in India, thereby enhancing self-reliance and positioning India as a key player in the global market, according to the Cabinet communique.

At present, India relies heavily on supplies from China, a dependence that has raised strategic concerns given the importance of rare earths in electronics, renewable energy, electric vehicles, defence technologies, and frontier manufacturing.

By fostering indigenous capacity, the government aims to secure supply chains vital to national growth and security.

The choice of States is far from arbitrary. Odisha, Kerala, Andhra Pradesh, and Tamil Nadu possess abundant deposits of monazite and other beach sand minerals, particularly along their coastal belts. These resources are rich in rare earth elements, making them natural candidates for integrated development.

The corridors will not merely focus on extraction but will extend to high-value processing and the production of rare earth magnets, thereby ensuring that India captures greater economic and technological value from its own reserves. Industry observers have welcomed the move, interpreting it as a strategic response to global anxieties over China’s near-monopoly in rare earth production and exports.

The initiative dovetails neatly with the objectives of the National Critical Minerals Mission and complements recent reforms in the mining sector aimed at enhancing transparency and efficiency.

It signals India’s determination to achieve self-reliance in critical minerals, a cornerstone of its broader industrial and energy transition.