Metals & Mining Industry in India

India is the 2nd largest Aluminium producer, 3rd largest lime producer and 4th largest iron ore producer in the world.

Advantage India

Demand
Growth

* Being the third largest energy consuming country in the world, there is always increased demand for power and electricity in the country, and hence the surge in demand for coal.

* Demand for steel is likely to grow by ~10% as the government’s augmented focus on infrastructural development continues with increased construction of roads, railways, airports, etc.

* In FY25, India has committed to achieve 50% of cumulative electric power installed capacity from non-fossil sources by 2030.

* India has set the targets of achieving a total crude steel capacity of 300 million tonnes per annum (MTPA) and total crude steel demand/production of 255 MTPA by FY31.

* Aluminum and zinc demand in India is rising, driven by growth in infrastructure, construction, steel, automotive, and the expanding EV sector. Zinc demand is expected to double in 5–10 years​

Attractive
Opportunities

* In January 2025, the Ministry of Steel has introduced the PLI Scheme 1.1 for specialty steel, covering five product categories, which aligns with the existing PLI Scheme. This initiative aims to encourage greater participation in response to industry requests for relaxation. The PLI Scheme 1.1 will be open for applications from January 6 to January 31, 2025, and will be implemented from FY26 to FY30.​

* India’s mining & construction equipment sector is set to grow 19% annually, adding Rs. 8.5 lakh crore (US$ 99.3 billion) to the economy and 20 million jobs by 2030, backed by policy support and technology upgrades.

* Under the PLI Scheme for Specialty Steel, 57 MoUs with 27 companies have been signed, attracting investments of US$ 3.55 billion (Rs. 29,500 crores), creating an additional capacity of 25 MT and generating employment for 17,000 people by FY 2027-28. As of December 2023, companies have invested US$ 1.55 billion (Rs.12,900 crores), with an expected investment of US$ 360 million (Rs. 3,000 crores) in FY'24. Five units have already commenced production, and nine more are set to begin operations in the last quarter of FY24.

Policy
Support

* Enactment of Mines and Minerals (Development and Regulation) Amendment Act, 2021 enabled captive mines owners (other than atomic minerals) to sell up to 50% of their annual mineral (including coal) production in the open market.

* In December 2023, the Ministry of Mines proposed capping performance security and upfront amounts for mining critical minerals to attract more bidders, reduce barriers to participation in auctions and expedite the process for mining leases. ​

Competitive
Advantage

* India holds a fair advantage in cost of production and conversion costs in steel and alumina.

* India is the second-largest crude steel producer in the world.

* India is the 2nd largest Aluminium producer, 3rd largest lime producer and 4th largest iron ore producer in the world.

Last updated: Aug, 2025

Major Mining States

  • Andhra Pradesh
  • Jharkhand
  • Odisha
  • Rajasthan
  • Karnataka
  • Madhya Pradesh
  • Maharashtra

IBEF Campaigns

MORE
Discover India

Discover India

A campaign designed to showcase the country’s rich heritage, vibrant ...

Aatmanirbhar Bharat Utsav 2024

Aatmanirbhar Bharat Utsav 2024

Union Minister of External Affairs, Dr. S. Jaishankar and Union Commerce an...

Case Studies

MORE

Makhana Goes Global: Strategies to Strengthen India’s Export Edge

Makhana Goes Global: Strategies to Strengthen India’s Export Edge

Makhana (Euryale ferox) is emerging as a global superfood owing to its exceptional nutritional and medicinal value. India dominates its production, ac...

India’s Animation & Comic Industry Expansion: The Rise of Indigenous Animated Content and Comic Storytelling

India’s Animation & Comic Industry Expansion: The Rise of Indigenous Animated Content and Comic Storytelling

India’s animation and comic industry is undergoing a dynamic transformation, evolving from a service-based outsourcing hub into a vibrant ecosys...

Driving Global: India’s Rising Passenger Vehicle Exports and its Emergence as an Automotive Export Hub

Driving Global: India’s Rising Passenger Vehicle Exports and its Emergence as an Automotive Export Hub

India’s automotive sector has long been a pillar of its industrial and economic strength. The growing momentum in passenger vehicle exports sign...

IBEF BLOG

MORE
Dairy Alternatives in India: How Consumer Health Trends Are Changing the Market
15 Oct 2025

Dairy Alternatives in India: How Consumer Health Trends Are Changing the Market

Traditional dairy products have a special importance in Indian traditions, ...

How India is Becoming a Global Leader in Generic Injectables
14 Oct 2025

How India is Becoming a Global Leader in Generic Injectables

India is rapidly evolving into a global hub for generic injectable drugs, d...

Fuelling Fitness: The Rapid Growth of India’s Protein Market
13 Oct 2025

Fuelling Fitness: The Rapid Growth of India’s Protein Market

India is witnessing a nutrition-driven move, with protein supplements becom...

Partners
Loading...