India's rare earth strategy is a multifaceted effort to achieve strategic material sovereignty, primarily driven by the National Critical Minerals Mission (NCMM) and the Union Budget 2026–27.Dedicated Rare Earth Corridors in the Union Budget 2026-27 and a scheme of 7,280 crore rupees to boost domestic production of Rare Earth Permanent Magnets is a strategic step by India to boost its REPMs manufacturing
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Key highlights
- Rare Earth Imperative of India
- Policy push for REPMs in Union Budget 2026
- India’s Institutional Strength and Resource Base
- Geological Resource Base of Minerals in India
- Global Integration and Strategic Outlook for India
- Role of Khanij Bidesh India Limited (KABIL)
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The Indian rare-earth policy has become a key component of India's industrial policy and strategy. Union Budget 2026, along with the 7,280 crore rupee Rare Earth Permanent Magnet (REPM) Manufacturing Scheme, reflects a clear shift in policies that are based on self-reliance in the necessary resources. India aims to decrease imports through creating special corridors in mineral-rich states, linking them to the current institutional capabilities, and satisfying long-term national goals that include Atmanirbhar Bharat, Net Zero 2070, and Viksit Bharat 2047. This project additionally strengthens the presence of India in the world-wide advanced-materials value-supply chains.
What are Rare Earth Elements (REEs)?
Rare Earth Elements (REEs) comprise a set of 17 chemically similar metallic elements that are indispensable to modern high-technology industries. They include the 15 lanthanides on the periodic table (atomic numbers 57–71), along with scandium (21) and yttrium (39). Often described as the vitamins of modern industry, REEs are vital for the performance of a wide range of technologies, from smartphones and electric vehicles to sophisticated defence systems.It is an initiative that is central because India aims to reduce its dependence on Chinese imports, improve clean energy, and defence supply chains, and become a leading global manufacturer of advanced minerals.
India’s rare earth push strengthens clean energy transition, defence capabilities, and reduces import dependence on critical minerals. India's rare earth strategy is a multifaceted effort to achieve strategic material sovereignty, primarily driven by the National Critical Minerals Mission (NCMM).
Rare Earth Imperative of India
India is fast-tracking its shift toward a net-zero economy by 2070 while bolstering defence preparedness through a comprehensive Rare Earth Strategy that prioritises domestic production of Rare Earth Permanent Magnets (REPMs). The Union Budget 2026–27 announced dedicated Rare Earth Corridors across Odisha, Kerala, Andhra Pradesh, and Tamil Nadu, alongside a ₹7,280-crore scheme to establish an integrated manufacturing capacity of 6,000 MTPA, aimed at reducing dependence on imports.
Strategic Significance of REPMs for India
REPMs are the strongest permanent magnets, and they are in every electric car, wind turbine, aerospace, and military defence machinery. Between 2022 and 2025, India imported about 60-80% REPMs by value and 85-90% by quality, which reflects the country’s dependence on the external supply chain and domestic production vulnerability.
India’s Resource Base
India possesses 13.15 million tonnes of monazite resource, with an approximate of 7.23 million tonnes of rare-earth oxides. The Geological Survey of India has also discovered 482.6 million tonnes of rare-earth ore deposits in 34 projects, and thus it offers solid grounds to support the downstream industries.
India’s Policy Imperative
As the consumption is expected to grow twice by 2030, the INR 7,280 crore REPM Manufacturing Scheme of the government, Rare Earth Corridors in the states of Odisha, Kerala, Andhra Pradesh, and Tamil Nadu, can be considered a breakthrough to self-sufficiency.
National Outlook for India
The decreased reliance on imports and the adjustment of rare-earth resource usage to the priorities of Atmanirbhar Bharat and Net Zero 2070 are helping India receive a position as a competitive participant in the global value chains of advanced materials.
Policy push for REPMs in Union Budget 2026
The policy framework of the rare-earth in India shows the attempt to combine the capacity of rare-earth with industry. The REPM Manufacturing Scheme, along with the Union Budget 2026-27, is the foundation of this initiative.
India’s REPM Manufacturing Scheme
In November 2025, a Rare Earth Permanent Magnet (REPM) Manufacturing Scheme was endorsed with a financial input of INR 7,280 crore to develop 6,000 MTPA of integrated capacity. An incentive worth INR 6,450 crore in five years and INR 750 crore capital subsidy are made to lure globally competitive bidding and promote high-tech facilities. The plan guarantees a complete ecosystem of rare-earth oxides to finished magnets, which will serve industries in the rising areas like electric mobility, renewable energy, aerospace, and defence.
Dedicate Rare Earth Corridors in India
Complementing the Scheme, the Union Budget 2026 announced corridors in Odisha, Kerala, Andhra Pradesh and Tamil Nadu. The isolated industrial practices focus on mining, processing, research, and manufacturing with the support of mineral-abundant states to shape local economies and reinforce R&D, further integrating with already established IREL facilities in Odisha and Kerala to create a national rare-earth ecosystem.
India’s Strategic Alignment
Together, these steps allow decreasing the level of dependence on imports, conforming to the goals of Atmanirbhar Bharat and Net Zero 2070, and making India a competitive actor in global value chains of advanced materials.
India’s Institutional Strength and Resource Base
The rare-earth development in India is based on the strong geological background and the capacity of the institutions. The self-reliance strategy of the country is credible due to the presence of large reserves and well-established businesses.
Geological Resource Base of Minerals in India
India is estimated to have 13.15 million tonnes of monazite deposits with about 7.23 million tonnes of the rare-earth oxides. Other resources of rare-earth ore found by the Geological Survey of India (GSI) include an extra 482.6 million tonnes of the ore in 34 exploration projects involving coastal sands in Odisha, Kerala, and Tamil Nadu, and hard-rock deposits in Gujarat and Rajasthan. These statistics highlight how India could contribute to the large-scale downstream industries.
India’s Institutional Strength for REPMs Manufacturing
IREL (India) Limited is a company that began its operations under the Department of Atomic Energy in the year 1963, and it is a key player in terms of strategic minerals processing. IREL operates a Rare Earth Extraction Plant in Odisha and a Refining Unit in Kerala so that they can handle the annual production capacity of 10 lakh tonnes. These plants align with the recently announced corridors, which provide continuity and scalability in the processing of the rare-earth.
Policy Integration for REPMs Manufacturing
The governance is further enforced by institutional reforms following the Mines and Minerals (Development and Regulation) Act (2023) and the National Critical Minerals Mission (2025), which allow the possibility of gaining access to the activities by individuals and green supply chains.
Global Integration and Strategic Outlook for India
The rare-earth policy by India is not limited to the national policies that are being carried out, but it is based on international relations, whereby India aims to create sustainable supply chains.
Bilateral Agreements by India on REPMs
The Ministry of Mines has entered into agreements with the mineral-endowed countries such as Australia, Argentina, Zambia, Mozambique, Peru, Zimbabwe, Malawi and Côte d'Ivoire. These alliances are meant to gain access to a long-term supply of rare earth and other important minerals required in clean energy and defence technology. One notable agreement is between the Khanij Bidesh India Limited (KABIL) and CAMYEN in Argentina to explore five lithium blocks of brine, which can be considered an important milestone in the foreign acquisition of assets.
Increasing Presence of India on Multilateral Platforms
India is a member of the Minerals Security Partnership (MSP), which is a group of major economies that work on diversifying the supply chains of the world. Also, India's inclusion in the Indo-Pacific Economic Framework (IPEF) will facilitate collaboration in the direction of clean energy as well as critical minerals. It is through these platforms that there are avenues of technology sharing, investment and sustainable mining practices, and hence minimising the risks of disruptions to supply.
Strategic Outlook for India
Through both domestic corridors and international deals, India is essentially becoming an assured collaborator beyond the regional high-value chain. This dual strategy will ensure supply, security, and support tothe Net Zero 2070 target, and aligns with Viksit Bharat 2047.
Conclusion
To sum it up, India has taken a bold action on the rare-earth policy, which will enable it to safeguard its industrial, energy, and defence future. This all-purpose combination of large geological reserves, institutional capability via IREL, and policy efforts like the INR 7,280 crore REPM Manufacturing Scheme and special corridors will guarantee a strong local ecosystem. Together with multilateral arrangements and global partnerships, such actions decrease reliance on imports and enhance clean transitions, as well as contribute to the longevity of national priorities of the Atmanirbhar Bharat, Net Zero 2070, and Viksit Bharat 2047.