Budget 2026: GMDC shares rally 5% as FM Sitharaman announces rare earth corridor

Synopsis

GMDC and NMDC shares rose after the Budget 2026 announced a dedicated rare earths corridor aimed at building a complete critical minerals supply chain. With states like Tamil Nadu, Odisha and Kerala set to become key hubs, the move boosts long-term prospects for India’s rare earth and mining companies.

Shares of Gujarat Mineral Development Corporation (GMDC) jumped nearly 5% to Rs 603 on the NSE, while NMDC inched up about 1%, after Finance Minister Nirmala Sitharaman unveiled a major new initiative targeting rare earth minerals in her Budget speech.

The government is rolling out a dedicated rare earths corridor, a strategic plan to build a full-fledged supply chain for critical minerals. States like Odisha, Kerala, Andhra Pradesh, and Tamil Nadu are set to become hubs for mining, processing, and distributing these essential resources, the FM mentioned.

Under this initiative, states such as Tamil Nadu will gain from a permanent rare earths development scheme, designed to streamline the entire value chain from extraction to market. The move is likely to strengthen the long-term growth prospects of companies in the rare earth sector, a sentiment already reflected in the recent market rally.

Also read: Catch all the D-Street action on Budget day live here

With global demand for rare earths surging, this corridor could not only position India as a strategic player in the sector but also create new opportunities for investors keeping a close eye on the mining landscape.

Commenting on the government’s rare-earth corridor announcement, Divam Sharma, Co-founder and Fund Manager at Green Portfolio PMS, said, "A notable positive from a market perspective is the focus on supply-chain resilience, including initiatives such as the rare-earth corridor. In a global environment marked by geopolitical uncertainty, securing critical minerals and inputs lowers operational risk and improves cost predictability. This has positive implications for margins and long-term competitiveness."

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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