Metals & Mining Industry in India

India is the second-largest producer of coal and crude steel in the world and also the fourth-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.

* 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 2030-31.

Attractive
Opportunities

* By becoming Aatmanirbhar in producing specialty steel, India will move up the steel value chain and come at par with advanced steel making countries like Korea and Japan.

* Under the PLI Scheme for Specialty Steel, 57 MoUs have been signed, attracting investments of Rs. 29,500 crore (US$ 3.55 billion), 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 Rs.12,900 crore (US$ 1.55 billion), with a further expected investment of Rs. 3,000 crore (US$ 360 million) in FY24. 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.

* As of FY22, the number of reporting mines in India were estimated at 1,319, of which reporting mines for metallic minerals were estimated at 545 and non-metallic minerals at 775.

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

Last updated: May, 2024

Major Mining States

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

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