Indian Economy News

Vedanta contributes 0.40 per cent to India GDP

  • IBEF
  • August 1, 2019

Mining giant Vedanta Ltd contributes around 0.40 per cent or Rs 67,554 crore (US$ 9.66 billion) to India's GDP through its activities.

Considering the company’s supplier and their capacity to generate employment, the indirect effect is another Rs 1,69,550 crore (US$ 24.25 billion) or 1 percent of GDP, the investigation led by Institute for Competitiveness (IFC) to assess the financial and social effect.

Vedanta is making almost 1 million man years of employment yearly through the entirety of its group companies. This translated into 17 job opportunities in India for each immediate employee in Vedanta.

According to IFC, "The induced impact, which likewise considers the consumption patterns of how employees and supplier spend their wages in the consumer economy, producing jobs and affecting GDP is equivalent to 2.20 percent of India's GDP,"

“n” rupee terms, the devotion of Vedanta, which has seven companies in commodities like aluminum, zinc, oil and gas, copper and iron mineral works out to Rs 3,74,000 crore (US$ 53.51 billion).

India figured out how to develop as a net exporter of copper since 2012 yet because of the closure of Tuticorin plant, this pattern was offset in 2018-19.

The effect of this was seen on India's import bill. The generation of Sterlite Copper in 2017-18 was 403 KT (kilo ton). The worldwide copper costs drift around US$ 6,200-6300 per tonne. This implies conclusion of Tuticorin plant has cost a strong loss of around USD 2.5 billion to the nation.

In 2018, IFC had also led an investigation on impact of Reliance Jio's entrance into the domestic telecom market.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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