Important Government Data Related to Mining Sector in India
- The contribution of the mining sector to the GDP of India is currently 2.5%
- India has 3527 mining leases for 40 major minerals covering a total area of 315,986 hectares.
- The mining sector’s contribution to GDP gradually fell from around 2.4% in 2014-15 to around 1.9% in 2012-13.
- The mining sector’s contribution to the GDP of India declined to the lowest 1.63% in 2019.
Mining Sector In India And Its Challenges
India is a mineral-rich country and mining exploration is one of the major industrial activities in India. India is one of the leading countries where varieties of minerals are collected through mining. The mining sector is expected to contribute to the GDP and economic development of the country. The mining sector also provides an opportunity for employment, infrastructure development, earning of foreign exchange, and supply of materials for green technologies. However, there has been no major improvement in the country’s GDP on account of mining in recent years. India has been facing difficulties utilizing the potential of mineral resources through mining activities. In India, despite large land areas with mineral reserves, mining activities are very limited. This is one of the main reasons for the poor contribution of the mining sector. The other factors responsible for further this decline in the growth of the mining sector are the disruptions and closure of mines in some important states due to legislative regulations and local conflicts involving social and cultural issues.