With the federal government announcing an over $807 million plan for the establishment of Dedicated Rare Earth Corridors in the mineral-rich states of Odisha, Kerala, Andhra Pradesh, and Tamil Nadu for mining, processing, research, and manufacturing of Rare Earth Permanent Magnets (REPMs), India's defence stocks rallied on Tuesday on the National Stock Exchange (NSE).
"A scheme for rare earth permanent magnets was launched in 2025 November. We now propose to support the mineral-rich states of Odisha, Kerala, Andhra Pradesh and Tamil Nadu to establish dedicated rare earth corridors," Finance Minister Nirmala Sitharaman said while making the announcement during her Budget speech.
State-run aviation behemoth Hindustan Aeronautics Limited (HAL) was among the biggest gainers, with its share price surging nearly 3% to INR 4,467, while shares of shipbuilding heavyweight Mazagon Dock Shipbuilders Ltd (MDL) rose over 1%, ending two consecutive days of losses.
Among other gainers were Axiscades Technologies, which is actively involved with the Indian Air Force (IAF), in the Su-30MKI fighter jet modernisation plan.
The company's stock jumped 5 percent to INR 1,170.40 per share on the NSE.
Another firm closely associated with India's military-industrial complex, Unimech Aerospace, which provides aero-engine and missile tooling to defence establishments, saw its share price up by 9.99 percent.
The Government of India's move is in line with the flagship Atmanirbhar Bharat (Self-Reliant India) scheme, as India is presently dependent on Chinese imports for rare earth elements.
For starters, rare earths are indispensable for engine motors, electronic flight controls, electronic warfare and radars of modern fighter jets.
These are critical components for propulsion systems and sonars of submarines.
Moreover, rare earths are essential in missile technology, particularly for target acquisition, in smart bombs, loitering munitions, and missiles.
Among other gainers were Axiscades Technologies, which is actively involved with the Indian Air Force (IAF), in the Su-30MKI fighter jet modernisation plan.
The company's stock jumped 5 percent to INR 1,170.40 per share on the NSE.
Another firm closely associated with India's military-industrial complex, Unimech Aerospace, which provides aero-engine and missile tooling to defence establishments, saw its share price up by 9.99 percent.
The Government of India's move is in line with the flagship Atmanirbhar Bharat (Self-Reliant India) scheme, as India is presently dependent on Chinese imports for rare earth elements.
For starters, rare earths are indispensable for engine motors, electronic flight controls, electronic warfare and radars of modern fighter jets.
These are critical components for propulsion systems and sonars of submarines.
Moreover, rare earths are essential in missile technology, particularly for target acquisition, in smart bombs, loitering munitions, and missiles.