November 01, 2017
Rise in infrastructure development and automotive production are driving growth in the metals and mining sector in India. India has vast mineral potential with mining leases granted for longer durations of 20 to 30 years. India produces 88 minerals– 4 fuel-related minerals, 10 metallic minerals, 50 non-metallic minerals and 24 minor mineral.
India holds a fair advantage in cost of production and conversion costs in steel and alumina. The country is the 3rd largest steel producer with production of 97.38 million tonnes of crude steel in FY17. Crude Steel and Finished Steel production during April-September 2017 stood at 49.764 million tonnes and 52.079 million tonnes respectively. India is the largest producer of sheet mica in the world. India has the 7th largest bauxite reserves at around 2,908.85 million tonnes in FY17.
The Government of India has allowed 100 per cent Foreign Direct Investment (FDI) in the mining sector and exploration of metal and non-metal ores under the automatic route, which will propel growth in the sector. Power and cement industries also aiding growth in the metals and mining sector. Demand for iron and steel is set to grow, given the strong growth expectations for the residential and commercial building industry.