India is a mineral-rich country and a part of ancient Gondwanaland, with an abundance of resources hidden beneath it’s soil, still struggles to make significant contributions to its GDP through its mining industry, despite the vast potential.

Mining Industry of India

India’s mining industry, a vital sector, extracts minerals and ores contributing significantly to GDP. GDP contribution of the mining industry varies from 1.80℅ to 1.90℅ (at current price), it is approximately 10℅ of all industrial contribution to GDP. But it is a very least contribution, despite having a large availability of geological reserves. for Instance – according to data ( ministry of coal,2024) we have 352.13 billion mt coal reserves and we have extracted its 0.28℅ only till now.

Reasons behind least contribution –

• limited Exploration and Extraction – mineral resources remain under-explored and under-extracted, hindering industry growth. for example – India has significant iron ore resources, but extraction rates (1.13℅ of total reserves) are low due to lack of exploration.
• Environmental Issues – mining’s adverse environmental impact makes the society and government cautious. It is a resistance for growing industry. for example – Vedanta copper smelting plant in Tamil Nadu highlights the Environment concerns.
• Dependence on Imported Minerals – India lacks certain minerals, relying on imports. for instance – India imports most of it’s Gold and Silver from UAE , despite having significant reserves.
• Lack of Technological advancement – the industry’s efficiency and productivity suffer due to inadequate technological adoption. for instance – India still uses traditional methods for coal mining, whereas advanced countries use mechanized mining.
• Regulatory hurdles – Stringent laws and policies regulate the mining industry, stifling it’s development. For instance – Supreme Court of India suspended iron ore mining in Goa due to environment concerns and Legal hurdles.