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.

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

* 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.

* 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 was open for applications from January 6 to January 31, 2025, and will be implemented from FY26 to FY30.

* 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 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 FY28.

*India’s mining & construction equipment sector is set to grow 19% annually, adding Rs. 8.5 lakh crore (US$ 99 billion) to the economy and 20 million jobs by 2030, backed by policy support and technology upgrades.

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.

* India launched the seven-year National Critical Mineral Mission in January 2025 with a proposed Rs. 16,300 crore (US$ 1.9 billion) outlay and an expected Rs. 18,000 crore (US$ 2.1 billion) investment by Public Sector Undertakings and other stakeholders to secure key minerals for clean energy and advanced technologies.

Competitive
Advantage

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

* In FY25 (Provisional), the number of reporting mines in India stood at 1,973, down from 2,046 in FY24. Reporting metallic mineral mines decreased from 799 to 772, while non-metallic mineral mines declined from 1,247 to 1,201. Excluding atomic minerals, fuel mineral and minor minerals.

* India is the second largest Aluminium producer, third largest lime producer and fourth largest iron ore producer in the world.

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Last updated: Oct, 2025

Metals and Mining Industry Report

Aug, 2025

Introduction

India holds a fair advantage in production and conversion costs in steel and alumina. Its strategic location enables export opportunities to develop as well as fast-developing Asian markets.

Minerals are precious natural resources that serve as essential raw materials for fundamental industries, so the growth of the mining industry is essential for the overall industrial development of a nation. The vast resources of numerous metallic and non-metallic minerals that India is endowed with serve as a foundation for the expansion and advancement of the nation's mining industry. India is largely self-sufficient in metallic minerals including bauxite, chromite, iron ore, and lignite as well as mineral fuels like coal and lignite. The industry has the potential to significantly impact GDP growth, foreign exchange earnings, and give end-use industries like building, infrastructure, automotive, and electricity, among others, a competitive edge by obtaining essential raw materials at reasonable rates.

Rise in infrastructure development and automotive production are driving growth. Power and cement industries are also aiding growth for the sector. Demand for iron and steel is set to continue given the strong growth expectations for the residential and commercial building industry.

Market Size

In FY26 (April-July 2025), crude steel production in India stood at 54.19 MT.

In FY26 (April-July 2025), the exports of iron and steel stood at Rs. 27,335 crore (US$ 3.19 billion).

India is expected to surpass its steel production capacity target of 300 MT by 2030, reaching an estimated 330 MT.

India is the second-largest producer of aluminium globally. The production of primary aluminium reached 7.07 lakh ton (LT) in FY26 (April-May 2025) from 6.98 LT in FY25 (April-May 2024).

India's iron ore production decreased by 24% to 75.12 million metric tonnes (MMT) during FY26 (April-June 2025), compared to 98.84 MMT in the same period last year.

In FY25, exports of iron ore stood at Rs. 17,623 crore (US$ 2.06 billion) as compared to Rs. 32,433 crore (US$ 3.78 billion) in FY24.

Production of metallic and non-metallic minerals

India's iron ore production stood at 289.4 MT in FY25, an increase of 4.57% compared with 276.7 MT in FY24.

The total value of mineral production FY26 (April-July 2025) Rs. 51,143 crore (US$ 5.97 billion), as against Rs 49,578 crore (US$ 5.79 billion) during the corresponding period in FY25.

India’s copper demand is expected to grow about 7% annually, led by renewable energy expansion, electric vehicles, and infrastructure projects including industrial corridors, national highways, and the Housing for All programme, with domestic consumption already exceeding 7,50,000 tonnes against production of about 5,55,000 tonnes with demand projected to double by 2030.

GVA at constant prices from mining and quarrying stood at Rs. 3,38,884 crore (US$ 39.55 billion) in FY25, as per RBI.

The construction sector’s Gross Value Added (GVA) at current prices was estimated at Rs. 15,72,285 crore (US$ 183.49 billion) for FY25 against Rs. 14,37,788 crore (US$ 167.79 billion) for FY24 as per RBI.

The Index of Eight Core Industries recorded a final growth of 2.2% in June 2025, while cumulative growth for FY26 (April-July 2025) stood at 1.6% compared to the same period last year.

Investments/ Developments

Some of the investments/ developments in the Metals & Mining sector in the recent past are as follows:

As of August 2025, JSW Steel and Japan’s JFE Steel are planning to jointly invest Rs. 5,845 crore (US$ 682 million) to expand capacity for cold-rolled grain-oriented electrical steel (CRGO) to 3,50,000 tonnes per annum by FY28 by scaling up the Nashik plant from 50,000 to 2,50,000 TPA and increasing the Vijayanagar unit’s capacity to 1,00,000 TPA.
On July 7, 2025, Tata Steel signed a Memorandum of Understanding with Australia’s InQuik Group to bring modular bridge construction technology to India, using prefabricated steel formwork filled with concrete on site to enable faster, cost-effective, climate resilient and scalable bridge infrastructure, especially useful in remote regions.
NALCO produced 39,859 Metric Tonne of Aluminium and sold 37,178 Metric Tonne of Aluminium metal in July 2025.
BALCO produced 50,000 Metric Tonne of Aluminium and sold 48,994 Metric Tonne of Aluminium metal in July 2025.
Vedanta Ltd (Aluminium) produced 1,56,200 Metric Tonne of Aluminium and sold 1,57,918 Metric Tonne of Aluminium metal in July 2025.
In June 2025, India and Australia strengthened their Critical Minerals Investment Partnership to co-invest in lithium and cobalt projects and build resilient clean-energy supply chains.
Between April 2000-June 2025, FDI inflows in the metallurgical industry stood at Rs. 1,60,000 crore (US$ 18.6 billion), followed by the mining Rs. 30,077 crore (US$ 3.51 billion), diamond & gold ornaments Rs. 12,665 crore (US$ 1.47 billion), and coal production Rs. 238 crore (US$ 27.73 million).
India’s steel exports in July 2025 saw a higher share from Belgium, Italy, Spain, Taiwan, Bulgaria, the US and Qatar, while the share of the UAE, Nepal and Portugal declined compared to July 2024.
With the fifth-largest coal reserves and as the second-largest consumer, coal remains crucial for India, contributing 55% to the national energy mix and fuelling over 74% of total power generation as of April 2025.
On March 28, 2025, AM/NS India has secured 890 hectares of land in Rajayyapeta, Anakapalli district, Andhra Pradesh for a new integrated steel mill with planned capacity of about 7 MTPA of crude steel, expanding beyond its Hazira operations to meet rising domestic demand.
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 and Kazakhstan have launched IREUK Titanium Limited, a joint venture to produce Titanium Slag in India, marking India's first venture in Central Asia. The company will convert low-grade Ilmenite into high-grade titanium feedstock, aiming to enhance the titanium value chain in India and create jobs in Odisha.
Southeastern Coalfields Limited (SECL), a subsidiary of Coal India in Chhattisgarh, has reached a milestone with its Gevra and Kusmunda coal mines ranking 2nd and 4th on WorldAtlas.com’s list of the world's largest coal mines. Located in Korba district, these mines together produce over 100 million tons of coal annually, accounting for about 10% of India’s total coal production.
India is experiencing a construction boom driven by a growing housing economy and significant government infrastructure investments. The country is projected to become the third-largest construction market in the world, following China and the US, by 2025.
In January 2024, India and Argentina signed an agreement to undertake the exploration and development of five lithium blocks, enhancing India's efforts in sourcing lithium. Khanij Bidesh India Limited (KABIL) has obtained exploration and exclusivity right for these five blocks.
In February 2024, an MoU has been signed between India and the Republic of Cote d'lvoire, for collaboration in field of Geology and Mineral Resources.
In March 2024, Karnataka and Rajasthan initiated the auction of Exploration Licences (EL) for critical and deep-seated minerals, marking the first such auction in India. Under the amended Mines and Minerals (Development and Regulation) Act, 1957, introduced by the MMDR Amendment Act, 2023, 29 critical minerals are eligible for exploration and mining concessions.

Government Initiatives

The Government of India has adopted few initiatives in the recent past, some of these are as follows:

In August 2025, the Commerce Ministry, via the DGTR, has recommended a three-year safeguard duty on imports of certain flat steel products, 12% in year one, 11.5% in year two, and 11% in year three, to protect domestic producers from a sharp import surge.
India launched the seven-year National Critical Mineral Mission in January 2025 with a proposed Rs. 16,300 crore (US$ 1.9 billion) outlay and an expected Rs. 18,000 crore (US$ 2.1 billion) investment by Public Sector Undertakings and other stakeholders to secure key minerals for clean energy and advanced technologies.
By May 27, 2025, the Centre had successfully auctioned a cumulative 34 critical/strategic mineral blocks across five tranches out of 55 offered, including the first-ever potash block; these include both Mining Leases (ML) and Composite Licences (CL) across multiple states.
In January 2025, the Cabinet approved the National Critical Mineral Mission to fund exploration-to-recycling, with multi-year budgetary support and complementary PSU investments.
In the Union Budget 2025-26, capital investment outlay for infrastructure is being increased by 11.1% to Rs. 11.2 lakh crore (US$ 129.0 billion). To encourage higher private participation, the government has proposed various measures.
In February 2024, the Union Cabinet approved the amendment to the Mines and Minerals (Development and Regulation) Act,1957 specifying royalty rates for 12 critical minerals, thus completing the rationalization process for all 24 strategic minerals. This move aims to streamline the mining sector and auction processes, aligning with recent amendments to the MMDR Amendment Act, 2023.
In December 2023, the Ministry of Mines proposed capping performance security and upfront amounts for mining critical minerals to attract more bidders. Currently based on a percentage of the Value of Estimated Resources (VER), the move aims to reduce barriers to participation in auctions and expedite the process for mining leases.
In October 2023, the Union Cabinet approved the amendment of the Second Schedule of the Mines and Minerals (Development and Regulation) Act, 1957, specifying royalty rates for three critical minerals: Lithium, Niobium, and Rare Earth Elements (REEs) paving the way for the auctioning of blocks for these minerals, as outlined in the MMDR Amendment Act, 2023.
The government plans to monetize assets worth Rs. 28,727 crore (US$ 3.68 billion) in the mining sector over 2022-25.
In 2022, PLI Scheme for domestic production of specialty steel has been approved with an outlay of Rs. 6,322 crore (US$ 762.4 million) by the Cabinet.
Import duty on Anthracite/Pulverized Coal Injection (PCI) coal, Coke, and Semi-coke and Ferronickel were reduced to zero.
Export duty on Iron ores/ concentrates and iron ore pellets was raised to 50% and 45%, respectively.
In addition, 15% export duty was imposed on pig iron and several steel products.
The Ministry of Mines of the Government of India has signed MoUs with different nations.
The National Steel Policy aims to boost per capita steel consumption to 160 kgs by 2030-31. The government has a fixed objective of increasing rural consumption of steel from the current 19.6 kgs per capita to 38 kgs per capita by 2030-31.

Road Ahead

There is a 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. Iron and steel make up a core component for the real estate sector. Demand for these metals is set to continue given strong growth expectations for the residential and commercial building industry.

The Government of India has also helped in the development of the metals and mining sector in India by launching key policy initiatives. The National Mineral Policy, which was approved by the government in February 2019, has ensured improved regulation and enforcement, more transparency, balanced social and economic growth, and sustainable mining techniques. The policy grants industry status to the mining activities and boost private sector funding.

Additionally, it aims to facilitate the merger and acquisition of mining companies, entice private sector involvement in exploration, and permit the transfer of mineral corridors created specifically for metals and mining leases. In the future, both increased domestic demand and exports are projected to play significant roles in

driving the industry's expansion and its contribution to GDP growth in a post-covid environment.

References: Media Reports, Press Information Bureau (PIB), Union Budget 2025-26, Ministry of Mines, Ministry of Coal, Ministry of Steel, Central Electricity Authority, Ministry of New and Renewable Energy, DPIIT