Madhumitha Jaganmohan
Research expert covering climate and environmental sustainability
Mining industry in India - statistics & facts
India, a treasure trove of mineral resources, has unearthed a staggering 95 different minerals over the years, fueling its industries and propelling economic growth. India's abundant reserves of metallic minerals like bauxite, chromite, and iron ore, as well as mineral fuels such as coal and lignite, position the country for significant economic growth. The industry has the potential to contribute to GDP growth and foreign exchange earnings, while also providing essential raw materials for various end-use industries. At the forefront of this mining powerhouse is Odisha, a state contributing over 40 percent of India's mineral production.
Moving forward, it is anticipated that both heightened domestic demand and exports will significantly contribute to the expansion of the industry and its impact on GDP growth in a post-COVID landscape.
Economic contribution of India's mining sector
The mining industry has been a significant contributor to the Indian economy. In 2022, India was the world's second largest cement and coal producer, and the sixth largest mica and bauxite producer, to name just a few. Indeed, the country accounted for nearly nine percent of the global coal production share and a 10 percent share of the global proved coal reserves worldwide. However, despite its large coal reserves, the share of coal in major imports jumped from just over five percent in 2022 to eight percent in 2023 to meet the growing demand.Indian mining companies
The majority of India's mines are owned by private companies that are market leaders in their respective manufacturing industries. Mineral concessions in India are only granted to Indian nationals or entities incorporated in India. However, under Indian FDI policy, foreign parties can invest up to 100 percent in such companies' equity. As of financial year 2023, India's leading mining companies based on revenue were Hindalco Industries, Vedanta, and Hindustan Zinc.Commercial coal mining
Following the impact of COVID-19 on the Indian economy, the Indian government launched commercial coal mining incentives to firms other than those in the steel and power sectors in 2020. The move was to boost domestic coal production, reduce imports, and benefit all user industries. However, this was stalled, citing the need for an extension by investors. Historically, mining has harmed the country's environment, affecting specific communities the hardest. The government's launch of coal auctions for commercial coal mining once again triggered the debate around the transition to clean energy.Moving forward, it is anticipated that both heightened domestic demand and exports will significantly contribute to the expansion of the industry and its impact on GDP growth in a post-COVID landscape.
