Indian Mining Industry

The Indian mining sector is strategically important for India’s growth. The mining sector growth has significant implications for downstream industries such as power, steel, and aluminium, which are closely associated with the economy’s manufacturing (e.g., auto, chemicals, steel, and cement) and infrastructure (e.g., road, rail, and real estate) sectors. Considering its vast mineral reserves, India is endowed with significant mineral wealth. The contribution of mining to India’s GDP has been estimated to vary between 2.1 percent and 2.5 percent over the last decade. The mining industry has the potential to help propel the country forward to a USD30 trillion economy by 2047. Furthermore, the mining industry can potentially create an additional 25 million jobs (direct and induced) over the business-as-usual scenario by 2047, which would be a significant share of the total non-farm jobs required to absorb India’s demographic demands. Moreover, the mining industry could contribute an additional USD500 billion to India’s GDP by 2047.

The Indian mining industry is at an interesting pathway and recently saw various reforms to unlock the country’s mineral potential. The government has taken several initiatives, such as granting exploration licences (EL) through auction and omitting 6 minerals from the list of 12 atomic minerals in the MMDR Amendment Act 2023 to attract private players. In addition, there is a significant focus on policy reforms, incentivisation, the development of multidisciplinary exploration capacity and investment to fast-track exploration activities for deep-seated and critical minerals.