Union Budget 2026–27: Centre announces Rare-Earth Corridors in Odisha

Union Finance Minister Nirmala Sitharaman on Saturday announced the establishment of dedicated rare-earth corridors in mineral-rich states, including Odisha, as part of the Union Budget 2026–27, with the aim of strengthening domestic supply chains and reducing dependence on imports.

Presenting the Budget in Parliament, Sitharaman recalled that a scheme for rare-earth permanent magnets was launched in 2025. She said the Centre will now extend support to Odisha, Kerala, Andhra Pradesh and Tamil Nadu to develop specialised rare-earth corridors. “This initiative will promote mining, processing, research and manufacturing,” the Finance Minister said.

To boost domestic chemical production and cut import reliance, Sitharaman also announced a new scheme to support states in setting up three dedicated chemical parks. These parks will be developed through a challenge-based approach under a cluster-based, plug-and-play model.

In a major push for the MSME sector, the Finance Minister proposed the creation of a Rs 10,000 crore MSME Growth Fund to help scale up high-potential enterprises and create future champions.

Additionally, Sitharaman announced the roll-out of a dedicated initiative for high-quality sports goods manufacturing and research, signalling focused support for innovation and value addition in the sector.

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The announcements reflect the Centre’s continued emphasis on self-reliance, industrial expansion and employment generation through targeted sector-specific interventions.