Mining Industry in India

DOI: https://doi.org/10.30686/1609-9192-2023-2-95-104
Читать на русскоя языкеV.B. Kondratiev
Institute of World Economy and International Relations of the Russian Academy of Sciences, Moscow, Russian Federation
Russian Mining Industry №1 / 2023 р. 95-104

Abstract: India is rich in mineral resources, but this sector still has a huge scope for development as the country has yet to explore its untapped potential. Moreover, various initiatives taken by the government have resulted in the country having a significant geological potential which has increased from 571 thousand sq. km in 2014 to 688 thousand sq. km, in 2022. Mining, is an important sector of the country's economy However, due to COVID 19 and limited final demand, the sector saw a decline in total mineral production in FY2021. After the economy gradually opened up and restrictions were lifted in FY2022, mineral production volumes recovered. Strong demand from the energy, infrastructure, and automotive industries domestically and internationally supported growth, thereby encouraging companies to expand their capacity. One of the major bottlenecks in investing into the Indian mining industry is the delays in obtaining a mining permit. This process takes 3-7 years. High railway rates and a shortage of railway cars pose barriers to investment. India encourages joint ventures between foreign and domestic companies to attract financing and technology and ensure access to global markets. Resources for potential joint exploration include gold, diamonds, copper, lead, zinc, nickel, cobalt, molybdenum, lithium, tin, tungsten, silver, platinum group metals, rare earth metals, chromites and manganese ores.

Keywords: mining industry, India, geological potential, role of the state

For citation: Kondratiev V.B. Mining Industry in India. Russian Mining Industry. 2023;(2):95–104. https://doi.org/10.30686/1609-9192-2023-2-95-104

Article info

Received: 08.03.2023

Revised: 04.04.2023

Accepted: 11.04.2023

Information about the author

Vladimir B. Kondratiev – Dr. Sci. (Econ.), Professor, Head of Center for Industrial and Investment Research, Institute of World Economy and International Relations of the Russian Academy of Sciences, Moscow, Russian Federation; e-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

References

1. De A., Bhattacharjee N. Impact of COVID-19 on the mining sector in India. KPMG; May 2020. Available at: https://assets.kpmg.com/content/dam/kpmg/in/pdf/2020/05/impact-of-covid19-on-mining-sector.pdf

2. Yunis J., Aliakbari E. Annual Survey of Mining Companies. Fraser Institute; 2021. Available at: https://www.fraserinstitute.org/studies/annual-survey-of-mining-companies-2021

3. Stood D., Shah T. (eds) Indian Minerals and Mining Sector. The associated chambers of commerce and industry of India; July 2022. 36 p. Available at: https://www.assocham.org/uploads/files/Study_Indian%20Mineral%202022.pdf

4. Dwivedi A. ‘Make in India’ A Work In Progress. February 4, 2022. Available at: https://www.eurasiareview.com/04022022-make-in-indiaa-work-in-progress-analysis/

5. Afonso S. ArcelorMittal Nippon to Build $13 Billion Steel Plant in India. Bloomberg, December 17, 2021. Available at: https://www.bloomberg.com/news/articles/2021-12-17/arcelormittal-nippon-to-build-13-billion-steel-plant-in-india

6. Rishi Kumar V. MS Agarwal Foundries to set up ?1200-cr sponge iron plant, steel mill, at Mantralayam. BusinessLine November 13, 2020 Available at: https://www.thehindubusinessline.com/companies/ms-agarwal-foundries-to-set-up-1200-cr-sponge-iron-plant-steel-millatmantralayam/article33092816.ece

7. Федорова А. Производство и потребление алюминия в Индии увеличится в ближайшие 5 лет. ПРОНЕДРА, 24 ноября 2021 г. Режим доступа: https://pronedra.ru/proizvodstvo-i-potreblenie-alyuminiya-v-indii-uvelichitsya-v-blizhajshie-5-6-let-619579.html Fedorova A. Aluminum production and consumption in India will increase in the next 5 years. Pronedra, November 24, 2021. (In Russ.) Available at: https://pronedra.ru/proizvodstvo-i-potreblenie-alyuminiya-v-indii-uvelichitsya-v-blizhajshie-5-6-let-619579.html

8. Casey J.P . The future of mining in India. Mining Technology; May 15, 2019. Available at: https://www.mining-technology.com/features/mining-in-india-future/

9. Hall M. India’s new mining reforms explained. Mining Technology; March 17, 2021. Available at: https://www.mining-technology.com/features/indias-new-mining-reforms-explained/