Current Affairs 03 February 2026

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Rare Earth Corridors to Reduce Import Dependence

India has announced the creation of Rare Earth Corridors to strengthen domestic capacity in mining, processing, research, and manufacturing of critical minerals, aiming to reduce heavy import dependence on China.

During the Union Budget 2026, Finance Minister Nirmala Sitharaman stated that the government will support mineral-rich States Odisha, Kerala, Andhra Pradesh, and Tamil Nadu to establish these corridors. India’s imports increased from $14.1 million (2014) to $17.5 million (2024) and 45% imports are from China. This is the reason that Union Government focused on Rare Earth Corridors.

What are Rare Earth Elements (REEs)?

According to the International Energy Agency (IEA):

• 17 metallic elements those are classified into Light Rare Earths (LREEs) and Heavy Rare Earths (HREEs).
• Rare Earth Elements consist of 15 Lanthanides + Scandium + Yttrium.
• 15 Lanthanides
  • Light Rare Earth Elements (LREEs): Lanthanum (La), Cerium (Ce), Praseodymium (Pr), Neodymium (Nd), Promethium (Pm), Samarium (Sm), Europium (Eu).
  • Heavy Rare Earth Elements (HREEs): Gadolinium (Gd), Terbium (Tb), Dysprosium (Dy), Holmium (Ho), Erbium (Er), Thulium (Tm), Ytterbium (Yb), Lutetium (Lu)

SHE Marts & Girls’ Hostels for Women Empowerment

The Union Budget 2026 introduced major initiatives to strengthen women’s education and entrepreneurship, aiming to improve safety, access, and financial independence for women across India. Union Finance Minister announced two key proposals:

Girls’ Hostels in Every District

• One girls’ hostel per district
• Safe & accessible accommodation
• Beneficial for students in science, technology, laboratory-intensive courses
• Encourages participation in astronomy & astrophysics programmes

SHE Marts (Self-Help Entrepreneur Marts)

• Community-owned retail outlets
• Run by women Self-Help Groups (SHGs)
• Helps women transition from credit-linked livelihoods to enterprise ownership
• Builds on Lakpati Didi programme

Budget allocation for Census

The Union Budget 2026–27 increased funding for internal security, border development, and population data systems under the Ministry of Home Affairs (MHA).

• Total Budget increased by 9.44%.
• From ₹2,33,210 crore to ₹2,55,233.53 crore.
• ₹6,000 crore allocated for Population Census 2027
• ₹300 crore allocated for Vibrant Villages Programme (Phase II)

₹20,000 Crore Allocated for Carbon Capture, Utilisation and Storage (CCUS)

In a significant push towards India’s net-zero target (2070), the Union Budget has earmarked ₹20,000 crore for Carbon Capture, Utilisation and Storage (CCUS) technologies.

Carbon Capture, Utilisation and Storage refers to:

• Capturing CO₂ emissions from industries
• Either reusing CO₂ in products (chemicals, fuels, etc.)
• Or permanently storing it underground in geological formations

Seven High-Speed Rail Corridors Approved – Union Budget 2026

The Union Budget announced seven high-speed rail corridors to strengthen connectivity and accelerate regional growth. Finance Minister described these projects as “growth connectors”, aimed at linking major economic hubs and reducing travel time significantly. The corridors will span 4,000 km with a total outlay of ₹16 lakh crore, making it one of the largest railway expansion programmes in India.

Proposed High-Speed Corridors:

1. Mumbai – Pune
2. Pune – Hyderabad
3. Hyderabad – Bengaluru
4. Hyderabad – Chennai
5. Chennai – Bengaluru
6. Delhi – Varanasi
7. Varanasi – Siliguri

Union Budget 2026 allocation for neighbouring countries

The Union Budget 2026–27 has not allocated any funds for the development of Chabahar Port in Iran, indicating a temporary freeze on India’s strategic port project. In the previous fiscal year, the project had received ₹400 crore. The pause comes amid increasing geopolitical pressure after Donald Trump warned that countries trading with Iran could face 25% additional U.S. tariffs.

Chabahar port is strategically important for India as it:

• Provides access to Afghanistan & Central Asia
• Bypasses Pakistan
• Strengthens regional connectivity and trade

Allocations for Neighbourhood countries:

Country	Allocation	Change
Bangladesh	₹60 cr	Reduced (₹120 cr from ₹60 cr)
Bhutan	₹2,288.55 cr	Increased
Myanmar	₹300 cr	Reduced
Sri Lanka	₹400 cr	Increased
Nepal	₹800 cr	Increased

Union Budget 2026 Allocation for Andhra Pradesh

The Union Budget 2026 announced key infrastructure and industrial initiatives that will significantly benefit Andhra Pradesh, particularly through Rare Earth Corridors (REC) and High-Speed Rail Corridors (HSRC).

• Andhra Pradesh identified as one of four mineral-rich States.
• Two major corridors benefiting AP: Hyderabad – Bengaluru, Hyderabad – Chennai.
• Key stations: Kurnool, Dhone, Guntakal, Anantapur, Dharmavaram, Hindupur, Tadipatri, Yerraguntla, Kadapa, Rajampet, Renigunta.

Other Allocations:

• Google hyperscale data centre in Visakhapatnam
• Tax holiday till 2047 for global cloud/data centre services
• Bird-watching trails at Pulicat Lake
• Ecotourism trail at Araku Valley

Project Allocations:

• Polavaram Irrigation Project – ₹3,320 crore
• Rural Roads – ₹500.99 crore
• Amaravati Urban Development – ₹432.09 crore
• Roads & Bridges – ₹350 crore
• Climate Resilient Natural Farming – ₹155.32 crore

Yantra India Limited Gets ‘Miniratna Category-I’ Status

The Government of India has granted ‘Miniratna Category-I’ status to Yantra India Limited (YIL).

About Yantra India Limited (YIL)

• A Defence Public Sector Undertaking (DPSU)
• Formed after corporatisation of Ordnance Factory Board (OFB) in October 2021
• Functions under the Department of Defence Production

Biopharma SHAKTI

The Union Budget 2026–27 announced a major initiative to strengthen India’s biotechnology ecosystem by launching Biopharma SHAKTI with an outlay of ₹10,000 crore over five years. The scheme aims to transform India into a global biopharmaceutical manufacturing hub, with a target of capturing 5% of the global biopharma market.

What is Biopharma?

Biopharma refers to medicines developed using living organisms or biological systems, instead of chemical synthesis.

Examples: Vaccines, Biosimilars, Monoclonal antibodies, Gene & cell therapies and Modern insulin. These are mainly used for cancer, diabetes, autoimmune diseases, infectious diseases.

Disclaimer: This article is prepared for competitive exam preparation using publicly available information.