Natural Resources in India (especially Minerals Mining)

A. Role of Mining Industry in Indian Economy

The mining industry is considered as one of the fastest growing economies all over the
world but in particular, the contribution of mining to the country, especially those who
export mineral products, are felt intensively.

There are some economic benefits of mining which befalls a country, thereby placing
emphasis on the economic significance of mining and their impact on both the
government and the people. In contrast, many people have now raised the question why
is mining important to daily life, given that the impact of this industry is felt less by
countries who rely on imported goods.

B. The Economic Significance of Mining

Most people underestimate the importance of the role of this sector in global economies,
but little do they know national governments of countries who export minerals rely heavily
on this industry to boost their economic performance.

As a matter of fact, many developing African countries are dependent on the exploration
and the exploitation of their mineral resources such as coal, gold, ore, iron, and many
other mineral sectors which are deemed to open many opportunities for many economies.

So the importance of this sector is highlighted with the economic significance of mining,
especially since the economic benefits of mining are apparent.

C. Economic Benefits of Mining

Similarly, the economic benefits of mining also highlight the economic significance of
mining, given that both concepts are subsequent consequences of each other.

With the economic significance of this sector affected by the economic benefits of mining,
an economist always considers which significant decisions of the sector can positively

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 impact the economy and highlight the industry’s importance, hence the need for learning
what the economic benefits of mining are. Some of these benefits include:

1. Providing livelihood to local communities.

2. Generating income for the local government thereby directly contributing to its
economy.
3. Promoting a more efficient use of energy, saving people money.
4. Promoting environmental awareness through rehabilitation programs resulting to
more renewable sources than ever.

With these benefits being apparent, the contribution of this sector to the economy is sure
to be significant.

D. Contribution of Mining to the Economy

The contribution of the mining sector to the economic situation of a country is more
significant than most people think. The role of this sector in everyday life is to provide
essential materials to help facilitate the assembly of new ones (such as in mobile phones),
making it necessary for a country to practice safe mining to keep the other industries
going.

This is the reason why mining is important to daily life, because, without this sector, many
industries will be crippled, especially the manufacturing industry.

 Indian economy is expected to grow by approximately 7% in the years to come. Sectors

like infrastructure and automobiles will receive a renewed thrust that would further
generate demand for power and steel in the country. The mining sector provides raw
materials to these fast-growing sectors.

 The total value of mineral production (excluding atomic & fuel minerals) during 2017-
18 has been estimated at $16.6 bn, which shows an increase of about 13% over that
of the previous year.

 The mining sector’s contribution to the GDP is 2.3-2.5 % at present. Mineral production
in India grew at a compound annual growth rate (CAGR) of 5.72% between 2013-14
and 2017-18.

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 It can cut down the import costs as the country is the 3 rd largest steel producer, with a
production of 101.4 million tonnes of crude steel in 2017.

 India is the largest producer of sheet mica in the world and has the 7 th largest bauxite
reserves at around 2,908.85 million tonnes in FY17.

 It is a labour-intensive sector and provides employment for both unskilled labour and
skilled labour. Being a part of the primary sector, it largely provides unskilled jobs.

 The Development of the mining-based industry also gives a boost to the associated
industries and leads to the overall development of the region.

 India has large reserves of iron ore, bauxite, chromium, manganese ore, baryte,
rare earth and mineral salts. India produces as many as 95 minerals, which
includes 4 fuel, 10 metallic, 23 non-metallic, 3 atomic and 55 minor minerals
(including building and other materials). In 2015-16, there were more than 2,101
reported mines excluding the atomic and minor minerals, natural gas and
petroleum (crude).

India has a total geographical area of about 328 million hectares. Of this, the mining lease
(except than fuel, atomic and minor minerals) area as on 31.3.2014, constitutes around
0.14 percent. The Indian sub-soils are rich in onshore and off shore crude oils and gas,
coal, iron ore, copper, bauxite, etc. Of all variety of land use categories, the common
lands consisting of forest lands, pasture lands, and current fallow and cultural waste lands
dominate. Minerals are valuable natural resources that are finite and non-renewable.
They constitute the vital raw materials for many basic industries and are a major resource
for development.

The wide availability of minerals in the form of abundant rich reserves and the eco-
geological conditions make it very conducive for the growth and development of the
mining sector in India. As a major resource for development the extraction and
management of minerals has to be integrated into the overall strategy of the country‟s
economic development. The exploitation of minerals has to be guided by long-term
national goals and perspectives. Thus, minerals play a key role in the evolution of human
society and the development of leading economics.

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Mining sector, being one of the core sector of economy, provides basic raw materials to
many important industries like power generation (thermal), iron and steel, cement,
petroleum and natural gas, petro-chemicals, fertilisers, precious & semi-precious
metals/stones, electrical & electronics equipment, glass and ceramics etc