UPSC CSE Prelims 2024

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

India being a part of Gondwanaland, is richly endowed with mineral wealth such as coal, iron, mica, aluminium etc. However, the mining sector of India contributes only 2.2% to 2.5% to the GDP of the country. 

Reasons for Low Contribution:

1. Land Acquisition: There have been problems in acquiring land for a new mine. Arcelor Mittal, having failed to acquire land for seven years in Odisha, decided to call off their projects.

2. Delays in the Governmental Approvals: Inordinate delays have frustrated the investors as well. It has led to the withdrawal of many projects. POSCO abandoned the project in Karnataka.

3. Lack of transparency & Political Corruptions: Increased judicial scrutiny following corruption scandals in the allotment of mining blocks and environmental degradation caused by illegal mining have made matters worse.

4. Inadequate spending on the sector: India accounts for just 0.5 per cent of the USD 10.7 billion globals pending on mineral exploration.

5. The lack of geological data: The lack of geological data and modern technology has blocked significant discoveries of key commodities.

6. Legal ambiguities: The legal ambiguities have delayed approvals and mining leases.


The activity of mineral investigation and survey should be exempted from the provisions of the Fores Conservation Act.

It is also necessary that the central and state governments promote reconnaissance/ prospecting / exploration activities by the private sector.

Promote sophisticated technology like 3-D seismic, geophysical techniques, and non-invasive exploration.


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