Mining - #SectorUpdates
Mining has been a major economic activity in India which contributes significantly to the economy of India. The GDP contribution of the mining industry varies from 2.2 percent to 2.5 percent only but going by the GDP of the total industrial sector it contributes around 10 percent to 11 percent. India is the 3rd largest producer of coal and ranks 4th in terms of iron ore production globally. Realizing the potential the Government of India has allowed 100 percent Foreign Direct Investment (FDI) in the mining sector and exploration of metal and non-metal ores under the automatic route, which will propel growth in the sector. Power and cement industries are also aiding growth in the metals and mining sector. Demand for iron and steel is set to grow, given the strong growth expectation for the construction sectors. However, there is a need for rationalizing the taxation structure in mining sector for sustainable development and deriving long-term benefits in terms of sustained raw material security for industries.