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Equally important is the emphasis on fostering innovation, research, and skill development within these corridors, the minister said in the exclusive interview
These corridors will serve as comprehensive industrial ecosystems, encompassing mining, processing, refining, component manufacturing, research facilities, logistics infrastructure, and skilled manpower development, said Kumaraswamy. File pic/PTI
Calling the Narendra Modi government’s proposed rare earth corridor across four states—Tamil Nadu, Odisha, Kerala, and Andhra Pradesh—as a “national mission to build strategic resilience and build tech-sovereignty”, HD Kumaraswamy, union minister for steel and heavy industries, said that the Budget 2026-27 reflects the government’s “resolute commitment to building a technologically advanced, strategically secure, and self-reliant industrial ecosystem under the visionary leadership of Prime Minister Narendra Modi”.
In an exclusive interview with News18, the senior minister said, “The development of dedicated rare earth corridors in Tamil Nadu, Odisha, Kerala, and Andhra Pradesh marks a transformative step in establishing an integrated and future-ready value chain for advanced materials and high-technology manufacturing.”
Terming the proposal as one of the key highlights of the union budget, he said, “This budget also shows the government’s continued emphasis on strengthening India’s capabilities in rare earth and critical mineral-based manufacturing, which is fundamental to the nation’s long-term economic and strategic interests.”
“These corridors will serve as comprehensive industrial ecosystems, encompassing mining, processing, refining, component manufacturing, research facilities, logistics infrastructure, and skilled manpower development. By creating such holistic clusters, India is laying the foundation for sustained leadership in sectors such as electric mobility, renewable energy, electronics, defence manufacturing, aerospace, and high-performance engineering,” he added. Kumaraswamy has consistently worked to build India’s rare earth self-reliance by nudging domestic companies to acquire processing technology for the country’s reserves, said a senior officer in the ministry.
Explaining the criticality and geopolitical importance around the rare earth mineral-related issues, the minister said, “Rare earth permanent magnets and associated materials are indispensable for modern technologies, including electric vehicles, wind turbines, precision machinery, semiconductors, robotics, and next-generation communication systems. Through these corridors, the government aims to significantly reduce import dependence, enhance domestic value addition, and insulate critical industries from global supply chain disruptions. This initiative also reflects our strategic foresight in securing access to vital resources and positioning India as a reliable global partner in advanced manufacturing and clean energy solutions.”
Making the corridor a geopolitical and strategic pivot, Kumaraswamy said, “The rare earth corridor initiative is not merely an industrial programme; it represents a long-term national mission to build strategic resilience, technological sovereignty, and economic competitiveness. It will catalyse investments, strengthen export potential, and contribute decisively to India’s emergence as a global manufacturing powerhouse in critical and emerging technologies.”
Further, lauding the union budget, the minister told News18, “Equally important is the emphasis on fostering innovation, research, and skill development within these corridors. Dedicated centres of excellence, industry-academia partnerships, and incubation platforms will be promoted to nurture indigenous technologies and intellectual property. This integrated approach will empower Indian entrepreneurs, MSMEs, and start-ups to participate meaningfully in high-value global supply chains, while generating large-scale employment and promoting balanced regional development.”
Complementing this forward-looking approach, the budget also reflects the government’s commitment to strengthening domestic manufacturing capabilities in construction and mining equipment, machine tools, energy storage systems, and other critical sectors, he said. The establishment of high-tech tool rooms, promotion of indigenous equipment manufacturing, and rationalisation of customs duties for clean energy and critical mineral processing will further reinforce India’s industrial ecosystem and accelerate the journey towards Atmanirbhar Bharat, the minister added.
He also stated that the ministry of steel is working in collaboration with other related ministries to facilitate advanced research and innovative frameworks for feasible solutions for Carbon Capture, Utilisation and Storage (CCUS).
“In the steel sector, the strong focus on CCUS reflects our balanced approach towards industrial growth and environmental responsibility. Given India’s legacy capacities and structural constraints in conventional steel-making processes, CCUS emerges as a vital instrument for achieving meaningful decarbonisation without compromising productivity, employment, and global competitiveness. The ministry of steel, in close coordination with other ministries, is facilitating research, innovation, and collaborative frameworks to develop viable CCUS solutions suited to Indian conditions,” he said.
“This budget reinforces our collective resolve to harmonise economic growth with sustainability, to empower domestic industry with cutting-edge capabilities, and to realise the vision of a strong, inclusive, and Viksit Bharat. The ministry of heavy industries and the ministry of steel will continue to work closely with all stakeholders to ensure that these strategic initiatives translate into lasting outcomes for the nation,” he added.
February 01, 2026, 18:15 IST
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