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UPSC Mains 2021

Despite India being one of the countries of the Gondwanaland, its mining industry contributes much less to its Gross Domestic Product(GDP) in percentage. Discuss.

General Studies Paper - 1, Topic - Industries and Infrastructure

Jan 08, 2023

2 min read

There are several reasons why the mining industry in India contributes relatively little to the country's Gross Domestic Product (GDP) compared to other sectors.




First, the mining industry in India is relatively small compared to other sectors of the economy, such as agriculture, manufacturing, and services. According to data from the Indian Ministry of Mines, the mining sector accounts for just 2% of the country's GDP. The percentage share of GVA of metallic and non-metallic minerals under the ambit of Mineral Conservation and Development Rules (MCDR) in the country’s GDP was just 0.45 for the fiscal 2019-20.


Second, the mining industry in India has faced a number of challenges and barriers to growth, including issues related to land acquisition, environmental regulations, and the availability of capital. These challenges have made it difficult for the industry to expand and contribute more to the country's GDP.


Finally, the mining industry in India is heavily regulated, with the government playing a significant role in the sector. This regulation can make it difficult for companies to operate and be profitable, which can limit the industry's overall contribution to the economy.


In conclusion, while the mining industry in India has the potential to make a larger contribution to the country's GDP, a combination of small size, regulatory challenges, and other barriers have limited its growth and economic impact.

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