Union Budget 2026: Nirmala Sitharaman makes big announcements regarding rare earth elements; how important are these elements for India?
Finance Minister Nirmala Sitharaman is presenting the budget for the ninth time in the Lok Sabha. Earlier, she visited the Rashtrapati Bhavan, where she briefed President Droupadi Murmu about the budget. President Murmu offered Sitharaman curd and sugar as a traditional good luck gesture. The government is expected to make major announcements in this budget.
Today, February 1, 2026, is going to be recorded in the history of India. For the first time, on a Sunday, Finance Minister Nirmala Sitharaman is presenting her 9th consecutive and the Modi government's 15th budget for 2026. Today's budget is also historic because stock markets like NSE, BSE and MCX are open even on Sunday and investors are keeping a close eye on every update.
Major announcements regarding rare earth elements
Nirmala Sitharaman is making several major announcements keeping in mind the goal of a developed India. The Finance Minister has made a significant announcements regarding the promotion of electronics manufacturing in India, as well as rare earth elements. Under the 'Critical Minerals Mission', the Finance Minister has announced a massive fund and special tax concessions for the mining and processing of Rare Earth Elements. This move is being seen as a step towards India's 'independence' in the fields of defense, technology, and green energy.
Nirmala Sitharaman announced that a Rare Earth Corridor will be established in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu. In addition, three dedicated chemical parks will also be set up.
How important are rare earth elements for India?
Rare earth minerals are a group of 17 elements without which the modern world is unimaginable. From the smartphone in your hand to electric vehicle batteries, jet engines, missile guidance systems, and chips, they are used everywhere. Until now, China has had a near 90% monopoly on the global supply chain of these minerals, but India's new budget is set to challenge that monopoly.