Madhumitha Jaganmohan
Research expert covering climate and environmental sustainability
Get in touch with us nowEconomic contribution of India's mining sector
The mining industry has been a significant contributor to the Indian economy. In 2022, India was the world's second-largest cement and coal producer, and the sixth-largest mica and bauxite producer, to name just a few. Indeed, the country accounted for nearly nine percent of global coal production and a 10 percent share of the global proved coal reserves worldwide as of 2022. However, despite its large coal reserves, India's coal imports have been rising to meet the growing demand.Indian mining companies
The majority of India's mines are owned by private companies that are market leaders in their respective manufacturing industries. Mineral concessions in India are only granted to Indian nationals or entities incorporated in India. However, under Indian FDI policy, foreign parties can invest up to 100 percent in such companies' equity. As of financial year 2023, India's leading mining companies based on revenue were Hindalco Industries, Vedanta, and Hindustan Zinc.Commercial coal mining
To revive the economy following the coronavirus (COVID-19) pandemic, the Indian government launched commercial coal mining to firms other than those in the steel and power sectors in 2020. The move was to boost domestic coal production, reduce imports, and benefit all user industries. However, this was stalled, citing the need for an extension by investors. Historically, mining has harmed the country's environment, affecting specific communities the hardest. The government's launch of coal auctions for commercial coal mining once again triggered the debate around the transition to clean energy.
