India's mining sector, rich in diverse natural resources, continues to flourish, bolstered by a large market and a skilled workforce. Over time, it has become more robust, driven by various policies designed to enhance its capacity. The machinery and equipment segment, vital to the mining industry, plays a key role in the broader capital goods sector.

The mining sector remains a major contributor to GDP, industry, and employment, playing a crucial role in the nation’s growth strategy. The Indian government has focused on unlocking the untapped potential of this sector through forward-looking policies aimed at fostering sustainable development and technological progress. India boasts a rich geological diversity, producing 95% of steel, chromium, aluminium, iron ore, zinc, and manganese. Despite its strong position, the sector still holds considerable growth potential.

The contribution of mining to India’s GDP has been estimated to vary between 2.1 percent and 2.5 percent over the last decade. The mining industry has the potential to help propel the country forward to a USD30 trillion economy by 2047. Furthermore, the mining industry can potentially create an additional 25 million jobs (direct and induced) over the business-as-usual scenario by 2047, which would be a significant share of the total non-farm jobs required to absorb India’s demographic demands. Moreover, the mining industry could contribute an additional USD500 billion to India’s GDP by 2047

The mining industry plays a crucial role as a primary supplier of raw materials for various core industries. Its significance in a country like India is evident due to the high reliance on thermal energy, which meets around 72% of the nation's energy needs through thermal power generation. Geographically, India is endowed with a wide array of resources, including metallic, non-metallic, fuel, and atomic minerals, offering significant exploration potential. Currently, India holds prominent positions globally, ranking as the second-largest producer of coal and steel. It is also the fifth-largest country in terms of known gold reserves.

India is the second-largest producer of aluminium, the third-largest producer of lime, and the fourth-largest producer of iron ore. Additionally, it ranks as the fourth-largest producer of chromium, the seventh-largest producer of oxides, and the largest producer of zinc. The country is the sixth-largest producer of manganese, the seventh-largest producer of lead and sulphur, and the 11th-largest producer of titanium. India also holds the 18th position in phosphate production, ranks 16th in gypsum, the fifth-largest producer of graphite, and the ninth-largest producer of uranium in 2021.

The continued growth in iron and limestone production during the current financial year highlights robust demand in key industries such as steel and cement, alongside an increase in aluminum production. These growth trends contribute to sustained economic activity and strong demand in sectors like energy, infrastructure, construction, automotive, and machinery.

India's ambition to become a global manufacturing hub and a leader in clean energy requires substantial growth in mineral production. This expansion must be sustainable, responsible, and driven by technology, ensuring environmental protection, safety, and strong governance. The transition to renewable energy, particularly electric mobility and green hydrogen, will heavily depend on the metals and minerals sector to unlock its full potential. To support this, the government has implemented key policy reforms, such as granting industry status to mining, promoting private sector exploration, and encouraging mergers and acquisitions. These initiatives are designed to boost domestic demand and exports, making the mining sector a critical pillar of India's economy.

As quoted by our Honourable Prime Minister Shri Narendra Modi

“Self-reliance is not possible without a strong mining and mineral sector as the two are important pillars of our economy”