Metals and Mining

India holds a fair advantage in cost of production and conversion costs in steel and alumina. Its strategic location enables convenient exports to develop as well as the fast-developing Asian markets. India produces 95 minerals– 4 fuel-related minerals, 10 metallic minerals, 23 non-metallic minerals, 3 atomic minerals and 55 minor minerals (including building and other minerals). Rise in infrastructure development and automotive production are driving 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 continue, given the strong growth expectations for the residential and commercial building industry. India is the 3rd largest producer of coal. Coal production in the country stood at 688.8 million tonnes in FY18. It stood at 576.00 million tonnes between Apr 2018 -Mar 2019. India metals and mining sector has witnessed strong growth over the past few years. GVA from Mining and Quarrying reached US$ 51.31 billion in FY19 SAE. The index of mineral production was 10.5.6 in February 2019 showing an increase of 3 per cent as corresponding period of the previous year in the overall mineral production. Mining group under the Index of Industrial Production (IIP) stood at 101.9 for Apr-Nov 2019, showing a decrease of 0.1 per cent in April-November 2019. The government has allowed 100 per cent 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. FDI caps in the mining and exploration of metal and non-metal ores have been increased to 100 percent under the automatic route. The Ministry of Steel, Government of India aims to more than double the steel production capacity to 300 million tonnes by 2030-31, indicating new opportunities in the sector. National Mineral Policy 2019 launched for transparency, better regulation and enforcement, balanced social and economic growth into the sector.

Content Credit: IBEF
Royal Thai Embassy

56 N, Nyaya Marg,Chanakyapuri,New Delhi 110021
phoneTel No: (91-11) 24197200, Fax No: (91-11) 24197199
Email: thaiemb.india@gmail.com
www.thaiemb.org.in