Minerals are valuable natural resources being finite but non-renewable and constitute vital raw materials for many basic industries and act as a major resource for economic development. India being a mineral rich country, produces as many as 87 mineral commodities (including energy-producing minerals). Bauxite, chromite, iron and manganese ores, rutile, coal (apart from coking coal), lignite and nearly all other industrial minerals are produced domestically. India ranks among the top ten for several key minerals like coal, iron ore, bauxite, and manganese, with notable reserves of lithium and mica as well.
The base year for Mineral Production is currently set at 2011-12, according to the Government of India. Based on the same, the volume of Mineral Production in the country increased by 7.51% and in value by 14.83% in 2023-24, compared to 2022-23. As of 2023-24, the value of Mineral Production in the country is over INR 140,000 crore.
In the 21st century, India became a major economy, with the metal manufacturing industry contributing immensely to the country’s growth. The country has a booming metals manufacturing industry and is also home to huge deposits of natural resources with several metals like bauxite, chromite, copper, gold, iron ore, and manganese.
India achieved a historic feat in 2019 when it displaced Japan to become the world’s second largest crude steel producer, behind China. At 111.2 MT, India’s steel metal industry contributes directly around 2% of the country’s GDP, with much higher indirect contribution. Over the years, Indian Government took credible steps like National Steel Policy (NSP), reduction of duties etc. to improve the steel and metal manufacturing sector. As a result, the production and supply chain processes improved, helping create several quality jobs that provided direct and indirect employment to a large number of people. During 2019-24, India's steel output expanded at an impressive 6% compound annual growth rate (CAGR), significantly outpacing China’s 1% and outshining global steel production. Recognizing the immense opportunities that come with the steel manufacturing industry, the Ministry of Steel has initiated more proactive measures with the aim to elevate the steel production capacity to 300 MT by 2030-31.
India's copper production is growing, but due to its high demand has to rely on imports. In 2023-24, domestic copper ore production was 3.78 million tonnes.
Aluminum is the fastest growing metal in non-ferrous metal category, and continued increase in aluminum production has made India a net exporter of aluminum with around 40% of its domestic production being exported.
India's zinc industry is expecting to double its demand in next 5-10 years backed by huge investments in infrastructure sector. Zinc plays a major role in infrastructure development, through galvanization which prevents steel structures from corrosion. Since the world is switching over to green energy and strong growth in solar photovoltaics (PV), the opportunities are increasing manifold.
In view of the growth of this sector and the sectors ahead in the value chain, import duty on 25 minerals including lithium, gallium, germanium, copper, cobalt and nickel has already been exempted in Budget 2024-25. Since lithium, cobalt and nickel are essential for the manufacturing of batteries, the step is giving boost to the electric vehicles (EV) market. Reducing import duties on critical minerals, including waste and scrap, will help domestic manufacturing industries.
The Indian government has approved the National Critical Mineral Mission (NCMM) with a INR16,300 crore outlay, expecting an additional INR18,000 crore investment from Public Sector Undertakings (PSUs) and other entities, aiming for atmanirbharata in critical minerals.
The Indian Chamber of Commerce (ICC) plays a significant role in the minerals & metals sector by acting as a bridge between the government, mineral producers, metal manufactures and other stakeholders in the industry. It works on various fronts like policy advocacy, industry representation and promoting sustainable practices through events, facilitating collaboration through B2B to promote the growth, development, and modernization of the minerals and metals industry.
The major flagship initiatives taken up by Indian Chamber of Commerce in this sector are:
1) India Mineral & Metal Forum
2) India Coal Summit
The above initiatives provide an appropriate platform to the stakeholders and acts as a catalyst between the Government and Industry to create a conducive business environment. The committee actively works on important policy recommendation for the sector adding value and growth for the sectoral development.
