Mineral Wealth of India
The Indian economy is endowed with vast reserves of major metallic and non-metallic minerals like iron ore, bauxite, coal, limestone and manganese. India is among the top 10 producers for these ores globally. The states of Chhattisgarh, Jharkhand and Orissa are the most mineral rich regions in the economy.
Mining Industry Contribution
The mining and quarrying sector’s contribution to the GDP is 2.66% for FY2017 from 2.25% in FY2016. The government is to allot around 280 mines this fiscal. The domestic mining sector currently contributes about 10% -11% to the industrial sector. Over 80% of the mining in India is done in coal which has never been opened to commercial mining.
Mineral Exploration Policy
The new mineral exploration policy (NMEP) was launched in July 2016. NMEP recognizes the need to incentivize private sector participation. Till the end of 2016, 83 coal mines were allocated out of which 31 were allocated through auctions. The government has proposed the opening of commercial mining to the private sector. This move will drive industry growth and the demand for new equipment and technologies also.