New Delhi [India], February 1 (ANI): Finance Minister Nirmala Sitharaman has proposed to support mineral rich states such as Odisha, Kerala, Andhra Pradesh, and Tamil Nadu to establish dedicated rare earth corridors.

A scheme for rare earth permanent magnets was launched in 2025 November.

The Government had approved the 'Scheme to Promote Manufacturing of Sintered Rare Earth Permanent Magnet' with a financial outlay of Rs 7,280 crore. The scheme aims to establish 6,000 metric tonnes per annum (MTPA) of integrated REPM manufacturing capacity in India, covering the full 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 Union Budget for 2026-27.

To build the current rare earth capacity, Sitharaman proposed to establish high-tech tool rooms by central public sector enterprises at two locations as digitally enabled automation service bureaus that locally design, test and manufacture high precision components at scale and at lower cost. She also proposed a scheme for the enhancement of construction and infrastructure equipments will be introduced to strengthen domestic manufacturing of high value and technologically advanced CIE, the FM added.

In her budget speech, the FM also proposed to spend Rs 40,000 crore for electronics components manufacturing.

Finance Minister said India's Semiconductor Mission 1.0 expanded the country's semiconductor capabilities. Building on this, the government will now launch semiconductor mission 2.0 to produce equipment and materials, develop full-stack Indian IP, and strengthen 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%, attributing to 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. (ANI)