Growth of Metals and Mining Industry in India - Infographic

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

Advantage India

Demand
Growth

*In May 2026 India’s finished steel consumption reached 163.7 MT in 2025–26, driven by infrastructure, urbanisation and manufacturing growth, highlighting strong domestic demand.

*According to a report dated February 6, 2026, domestic copper consumption is expected to grow 10–12% annually over the next two years, driven by urbanisation, infrastructure expansion, and rising demand from renewable energy, electric vehicles, and power infrastructure .

*Similarly, the steel sector is entering a new growth phase, with demand projected to rise by around 9% in 2025–26, supported by broad-based consumption across construction, infrastructure, and industrial sectors

Robust economic growth icon

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.

*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.

Attractive investment icon India

Policy
Support

*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.

*India has strengthened policy support for the metals and mining sector through a series of key reforms. On February 03, 2026, initiatives such as the National Critical Mineral Mission and critical mineral auctions were advanced to enhance resource security. The Union Budget 2026–27 further introduced Rare Earth Corridors and incentives to boost domestic value chains. Earlier, reforms on December 31, 2025, including amendments to the MMDR Act and eased mining regulations, improved ease of doing business and supported higher mineral production.

India policy support icon

Competitive
Advantage

*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.

*The FY27 Budget strengthens the metals and mining sector through initiatives such as mineral corridors, duty exemptions, and MSME support, improving efficiency, reinforcing supply chains, and boosting exports, while advancing India’s global competitiveness and self-reliant manufacturing ecosystem.

Competitive advantage icon India
Last updated: May, 2026

Major Mining States

  • Andhra Pradesh
  • Jharkhand
  • Odisha
  • Rajasthan
  • Karnataka
  • Madhya Pradesh
  • Maharashtra
Metals And Mining Cluster 11 03 2022

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