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India's Rare Earth Corridors & Biopharma Boost in Budget 2026-27

Finance Minister Nirmala Sitharaman has proposed establishing 'rare earth corridors' in mineral-rich states like Odisha and Tamil Nadu to boost the entire value chain from mining to manufacturing. The budget also introduces the Biopharma Shakti programme with a ₹10,000 crore outlay over five years to position India as a global hub for biopharma and biosimilars. These initiatives build on previous schemes, including one for rare earth permanent magnets approved last year. The announcements are part of a broader push for self-reliance and scaling up manufacturing in strategic sectors.

Key Points: Budget 2026-27: Rare Earth Corridors & Biopharma Shakti Plan

  • Rare earth corridors for 4 states
  • ₹10,000cr Biopharma Shakti programme
  • Aims for global biopharma hub
  • Push for strategic sector manufacturing
2 min read

"Rare earth corridors to promote mining, research, manufacturing": FM Sitharaman

FM Sitharaman announces rare earth corridors for 4 states and a ₹10,000 crore Biopharma Shakti programme to boost manufacturing and research.

"We now propose to support mineral-rich states... to establish rare earth corridors to promote mining, processing, research and manufacturing. - Nirmala Sitharaman"

New Delhi, February 1

Union Finance Minister Nirmala Sitharaman on Sunday proposed 'rare earth corridors' for mineral-rich states, including Odisha, Kerala, Andhra Pradesh and Tamil Nadu.

Presenting the Union Budget 2026-27 in the Parliament, the Finance Minister said that the rare earth corridors will promote mining, processing, research and manufacturing.

FM Sitharaman said, "A scheme for rare earth permanent magnets was launched in 2025 November. We now propose to support mineral-rich states such as Odisha, Kerala, Andhra Pradesh and Tamil Nadu to establish rare earth corridors to promote mining, processing, research and manufacturing."

In November last year, the Union Cabinet, chaired by Prime Minister Narendra Modi, approved the 'Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnets' with a financial outlay of Rs 7,280 crore.

This was a first-of-its-kind initiative to establish 6,000 Metric Tons per Annum (MTPA) of integrated Rare Earth Permanent Magnet (REPM) manufacturing in India, thereby enhancing self-reliance and positioning India as a key player in the global REPM market.

Finance Minister Nirmala Sitharaman has proposed to push India's biopharma sector through a Biopharma Shakti programme, with an allocation of Rs 10,000 crore over the next five years.

Highlighting India's shift towards non-communicable diseases such as diabetes, the Finance Minister proposed Biopharma Shakti, with an outlay of ₹10,000 crore over five years, to develop India as a global biopharma manufacturing hub.

Bio Pharma Shakti is aimed at building at making ecosystem for biopharma and biosimilars, she said, presenting the Budget in the Parliament on Sunday.

Among other announcements, she proposed scaling up manufacturing in strategic and frontier sectors and developing city economic regions.

In her initial remarks, Finance Minister Nirmala Sitharaman said that since her government assumed office, the Indian economic trajectory has been marked by fiscal discipline and sustained growth.

She stressed that the government led by Prime Minister Narendra Modi has chosen action over ambivalence, and reform over rhetoric, keeping Atmanirbharta or self-reliance as a lodestar.

"Since we assumed office 12 years ago, India's economic trajectory has been marked by stability, fiscal discipline, sustained growth and moderate inflation," she said. She continued that India will balance ambition with inclusion going ahead.

Finance Minister Sitharaman presented her record ninth consecutive Union budget today in the Parliament.

- ANI

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Reader Comments

P
Priya S
Good initiative, but I hope the 'corridors' come with strict environmental safeguards. Mining in ecologically sensitive areas of Kerala and Tamil Nadu needs careful planning. We must not trade long-term environmental health for short-term industrial gains. The budget should have allocated specific funds for reclamation.
R
Rohit P
Finally! We have been importing these magnets for years. Setting up 6,000 MTPA capacity will create so many jobs in manufacturing and research. Hope the local youth in these states get proper skill training to benefit from these high-tech jobs. Atmanirbhar Bharat in action!
S
Sarah B
The Biopharma Shakti programme with ₹10,000 crore is equally significant. With the rise of diabetes and other NCDs, focusing on biopharma manufacturing is a smart, future-proof move. India can truly become the pharmacy of the world for advanced medicines too.
V
Vikram M
As someone from Andhra, I welcome this. Our state has mineral resources but lacks the processing infrastructure. This corridor can bring much-needed investment and technology. Hope the benefits reach the ground level and don't just remain on paper.
K
Karthik V
The budget seems to be doubling down on manufacturing and self-reliance. Good direction. My only concern is the execution speed. These projects need to be fast-tracked to compete with China's dominance in rare earths. Hope we see results before the next budget!

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