India Allocates $10 Billion to Rare Earths, Renewables in Bid to Counter China Dependence

India’s Union Budget 2026-27, unveiled on February 1, 2026, commits over $10 billion to develop domestic rare earth element (REE) supply chains and expand clean energy infrastructure, aiming to reduce reliance on Chinese imports. The plan includes establishing integrated rare earth corridors in Odisha, Kerala, Andhra Pradesh, and Tamil Nadu, leveraging India’s 8.52 million tonnes of REE reserves in coastal monazite sands. The budget builds on a previously approved $800 million scheme targeting 6,000 metric tonnes/year of sintered rare earth permanent magnets, with $4.6 billion in expected investments and 50,000 jobs from Kerala’s corridor alone. Tax exemptions for critical mineral processing and a $2.2 billion Carbon Capture, Utilisation, and Storage (CCUS) initiative complement broader renewable energy allocations totaling $9.6 billion. Nuclear energy receives $2.7 billion, supporting a goal of 100 GW capacity by 2047, including five indigenous Small Modular Reactors by 2033.