- Contributes significantly to GDP: The mining sector in India contributes significantly to the country’s GDP, accounting for nearly 2.4% of the total GDP. This is a significant contribution, especially considering the size of the Indian economy.
- Employment generation: The mining sector provides employment to a large number of people in the country, both directly and indirectly. The sector employs about 2.5 million people directly and about 8 million people indirectly.
- Boosts exports: The mining sector is a major contributor to India’s exports. The country is one of the leading exporters of minerals and mining products, including iron ore, coal, bauxite, and copper.
- Fosters industrial growth: The mining sector provides the raw materials required by various industries, such as steel, cement, and aluminum. This helps in the growth and development of these industries, which in turn contributes to the overall industrial growth of the country.
- Generates revenue: The mining sector generates significant revenue for the government through taxes, royalties, and other charges. This revenue is used for the development and welfare of the country.
- Helps in infrastructure development: The mining sector plays a crucial role in the development of infrastructure in the country. The revenue generated from the sector is used for the construction of roads, bridges, ports, and other infrastructure projects.
- Development of backward regions: The mining sector helps in the development of backward regions in the country, where the mines are located. These regions often have limited economic opportunities, and the development of the mining sector provides employment and other economic benefits to the local population.
- Contributes to energy security: The mining sector is a major contributor to India’s energy security. The country has abundant coal reserves, which are used for power generation and other energy-related activities. This ensures a stable and reliable supply of energy for the country.