Mining was responsible for a quarter of Indias GDP in 2010. Mining has been the driving force for over a decade and grew constantly with he GDP almost doubling from $1.32tn in 2009 to $2.6tn in 2017. It’s a wonder how our country has not focussed on this industry and due to legal fragility and weak policies the industry is almost at the stage of vanishing into thin air.
One of the questions we would like to ask is “If India had the oil resources instead of the Middle East would have locked it in with their retrograde policies and denied the world of development? Probably yes. That has been the story. India has not been an active participant in the future progress of mankind. More than GDP and Trade India must realize that this is about sharing the resources with the world at large and participating in the development and affordability of new technologies.
Mining in India: Depleting resources and increasing production
While India boasts significant resources, with the world’s fourth-largest deposits of coal according to World Atlas, stores of many of these minerals are geographically disparate, raising the potential for conflict between local and national governments over the wealth of the country’s five separate mineral belts.
According to data, we have copper ore reserves totally around 207 million tonnes (Mt) in 2015 and 154 million of these deposits are located in Madhya Pradesh. And it’s important to not that Madhya Pradesh also boasts of the country’s largest diamond reserves. India had 656Mt of bauxite in 2015 most of them found in Odisha. Silver or is concentrated in Rajasthan which has 138mt of the country’s total of 150Mt. India incidentally is the 3rd largest producer of Iron Ore and Odisha and Chhattisgarh has nearly .5 billion tonnes (bnt) and 1.4bnt respectively. But India in spite of all its wealth continues to be wanting on the economic growth front.
With the operating lines of 288 mines to expire in 2020 when all the mines will go back to the government the small scale miners are trying to get the best out. This has resulted in a leap in production but has also depleted the reserves and has created a glut and has cast a shadow over the long term profitability of the sector. The GDP from mining is hence expected to fall from a high of $16.3bn in January 2018 to fall to below $11.3bn by July 2019.