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 ranks 4th in terms of iron ore production globally. In FY18, production of iron ore stood at 210 million tonnes. India has around 8 per cent of world’s deposits of iron ore.
India became the world second largest crude steel producer in 2018 with output 106.5 million tonnes.
According to Ministry of Mines, India has the 7th largest bauxite reserves- around 2,908.85 million tonnes in FY17. Aluminium production stood at 1.33 million metric tonnes during Apr-Aug 2018 and is forecasted to grow to 3.33 million tonnes in FY20.
Cumulative FDI inflows into the metals and mining sector between April 2000 and December 2018 stood at US$ 14.65 billion as per Department of Industrial Policy and Promotion (DIPP).
Under the Mines and Minerals (Development and Regulation) Act of 1957, FDI upto 100% under Automatic route is allowed for the mining and exploration of metal and non- metal ores including diamond, gold, silver and precious ores, while FDI upto 100% under Government route is allowed in for mining and mineral separation of titanium bearing minerals and its ores.
The Government of India is taking steps boost the country's domestic steel sector and raise its capacity to 300 million tonnes (MT) by 2030-31.
FDI caps in the mining and exploration of metal and non-metal ores have been increased to 100 per cent under the automatic route.
National Mineral Policy 2019 launched for transparency, better regulation and enforcement, balanced social and economic growth into the sector.
In July 2018, Union Minister of Coal, Railways, Finance & Corporate Affairs launched a mobile application ‘Khan Prahari’ and Coal Mine Surveillance & Management System (CMSMS) developed by Central Mine Planning and Design Institute (CMPDI).
Following are the achievements of the government in the past year:
- 33 blocks of major minerals were successfully allocated in 2017.
- The Multi-sensor Aero-geophysical Survey of the obvious geological potential area was inaugurated on April 07, 2017.
- Mining Surveillance System (MSS) was launched on January 24, 2017. It aims to curb illegal mining activity through automatic remote sensing detection technology.
There is significant scope for new mining capacities in iron ore, bauxite and coal and considerable opportunities for future discoveries of sub- surface deposits.
Infrastructure projects continue to provide lucrative business opportunities for steel, zinc and aluminium producers. Aluminium production is forecasted to grow to 3.33 million metric tonnes by FY20.
Iron and steel make up a core component of the real estate sector. Demand for these metals is set to continue given strong growth expectations for the residential and commercial building industry.