Strategic Resource Initiative: Union Budget 2026 Prioritizes Rare Earth Corridors and Carbon Capture to Fortify National Supply Chains

The Union Budget 2026 introduces a landmark strategic framework designed to secure India's position in the global resource economy. The centerpiece is the establishment of dedicated rare earth corridors, a comprehensive initiative targeting the full value chain from mining and processing to advanced research and high-tech manufacturing. This move directly addresses critical vulnerabilities in supply chains for clean energy technologies, advanced electronics, and defense systems, where rare earth elements are indispensable. Concurrently, the budget's reinforced commitment to Carbon Capture, Utilization, and Storage (CCUS) technologies signals a dual-pronged approach: ensuring resource security while advancing climate-conscious industrial policy. Analytically, this represents a calculated shift from reactive import dependence to proactive domestic capacity building. The corridors are poised to create integrated industrial ecosystems, reducing geopolitical risks and fostering innovation in downstream applications. The coupling with CCUS underscores an intent to mitigate the environmental footprint of this strategic industrial expansion, aligning economic ambition with sustainability imperatives. This policy suite positions India to navigate the intensifying global competition for critical minerals and establish long-term technological sovereignty.