The mining sector’s contribution to India’s gross domestic product (GDP) has been falling over the past several years, largely owing to the under-exploration of obvious geological potential (OGP) and decreasing per unit expenditure on exploration.
This is according to the Federation of India Mineral Industries (FIMI), which in a report states that the mining industry’s contribution (excluding petroleum and natural gas) to India’s GDP in 2018/19 was pegged at 1.63%, down from a peak of 1.93% in 2012/13.
In 2016/17, mining’s contribution to GDP was at an all-time low of 1.54%.
This against the backdrop of the fact that eight core sectors of the Indian economy – coal, fertiliser, electricity, steel and cement – were dependent on mining.
In comparison, mining contributed 7.5% to South African GDP and 6.99 % to Australian GDP, the FIMI report notes.