Resourcing The Future

Despite the fluctuations in the mining industry, the sector is seeing much activity so as to make available raw materials for production.

The rapid pace of growth that the mining industry had been enjoying for over a decade was arrested in 2008–09, with the advent of global recession. World economic growth decelerated quickly, adversely affecting both developed and emerging economies. Circa 2018: A Supreme Court order forces mines in Goa to shut down operations. For more than 75 years, the mines have been the backbone of Goa’s economy, and always maintained higher environmental standards than Australia and Brazil, both of which produce the largest quantity of iron ore in the world. This led to loss of exports and job opportunities saw a decline. What made it worse was that at a time when the government is talking about making India self-sufficient, India continued to import natural resources, thus making finished goods more expensive.

Mining is one of the core sectors that drive growth in an economy. It not only contributes to the GDP, but acts as a catalyst for the growth of other core industries like power, steel, cement, etc., which, in turn, are critical for the overall development of the economy. Every 1% increment in the growth rate of mining and quarrying results in 1.2-1.4% increment in the growth rate of industrial. Both the sectors are largely complementary and influence one another. In such a situation, it is imperative that the government promote mining while ensuring that all rules and regulations are adhered to.

A CATALYST TO SUCCESS

For decades, mining in India has not achieved the optimal potential yet and the reserves to production ratios remain low. Over 80% of the mining in India is done in coal which has never been opened to commercial mining. Illegal mining, unsustainable mining activities, limited explorations, social and political land acquisition issues constrain the supply of the minerals.