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.

* 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.​

* The demand of zinc is expected to double in India in the next five to 10 years on the back of huge investments in infrastructure sector, including steel, International Zinc Association.​

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.​

* 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 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.

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

Last updated: Apr, 2025

Major Mining States

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

IBEF Campaigns

MORE
Discover India 2024

Discover India 2024

APEDA is organizing participation in SIAL Paris 2024 scheduled to be held f...

Aatmanirbhar Bharat Utsav 2024

Aatmanirbhar Bharat Utsav 2024

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

Case Studies

MORE

Unlocking Play: Evolution of India’s Toy Sector

Unlocking Play: Evolution of India’s Toy Sector

The history of toy-making in India is extensive and varied, spanning thousands of years. Terracotta figurines, wheeled carts, and animal-shaped toys t...

Shaping the Future: How PM Ujjwala Yojana is Addressing India's Energy Needs

Shaping the Future: How PM Ujjwala Yojana is Addressing India's Energy Needs

India, with its large population and diverse socio-economic conditions, has long struggled to ensure clean and affordable energy access for all, espec...

India's Electronics Sector: Pathway to Global Value Chain Integration

India's Electronics Sector: Pathway to Global Value Chain Integration

Electronics manufacturing plays an essential role in the global supply chain, fuelling everything from electric cars on the road to smartphones in our...

IBEF BLOG

MORE
Seaweed and the Blue Economy: India's Path to Coastal Prosperity
13 Jun 2025

Seaweed and the Blue Economy: India's Path to Coastal Prosperity

Seaweed, a highly versatile marine resource, holds significant potential fo...

From Fields to Fuel: The Indian Sugar Industry’s Role in Advancing Ethanol Blending
12 Jun 2025

From Fields to Fuel: The Indian Sugar Industry’s Role in Advancing Ethanol Blending

The Indian sugar industry is undergoing a transformation as it embraces eth...

Revolutionising India's Edible Oil Sector: Pathways to Sustainable Growth
11 Jun 2025

Revolutionising India's Edible Oil Sector: Pathways to Sustainable Growth

India ranks fourth in the world after the United States, China, and Brazil ...

Partners
Loading...