Union Budget 2026: Poll-bound Tamil Nadu to get rare earth corridor, high-speed rail network

nirmala

Union Finance Minister Nirmala Sitharaman on Sunday proposed a rare earth corridor for Tamil Nadu, a state that will go to polls later this year.

While presenting the Budget 2026 in the Lok Sabha, Sitharaman said, "India will sharpen its focus on the semiconductor mission, with an emphasis on building domestic capital-goods capabilities and creating an independent supply chain. Mineral-rich states such as Odisha, Tamil Nadu, Andhra Pradesh and Kerala will be key to securing access to rare earth resources."

The finance minister also announced high speed rail corridor from Hyderabad to Chennai which will be set up soon. The FM also proposed a coconut and cashew promotion scheme to enhance production in Kerala and Tamil Nadu.

Tamil Nadu is set to go to assembly polls in 2026.

The major allocations in the past for Tamil Nadu have been for the education sector, semiconductor manufacturing, and the housing scheme.

National Highway projects like the Madurai–Kollam (NH-744) and Chittoor–Thatchur corridors were some of the major infrastructure initiatives, boosting connectivity between key economic hubs, directly benefiting industries and local economies.