Q.5 Despite India being one of the countries of Gondwanaland, its mining industry contributes much less to its Gross Domestic Product(GDP) in percentage. Discuss

Model Answer :

Introduction

India, while being part of the ancient supercontinent Gondwanaland, has a relatively modest contribution of the mining industry to its Gross Domestic Product (GDP) compared to other sectors. 

As per Economic survey, The mining and quarrying sector contributed just 2.1% to India's GDP. 

Body

Reasons for low contribution  :
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Regulatory and Environmental Challenges

• Long delays in obtaining environmental clearances and land acquisition issues affect the efficiency and expansion of mining projects.

Infrastructure Deficiencies

• Inadequate infrastructure in mining regions hampers efficient mineral extraction and transportation.

Investment Constraints

• The mining sector may attract less investment compared to other sectors due to perceived risks and long project timelines.
• Land acquisition issues and conflicts with local communities can disrupt mining operations.

Limited Processing Capacity

• The lack of advanced processing facilities can lead to lower value addition from extracted minerals.

Technological Constraints

• The adoption of modern mining technologies is slower in India compared to global standards, affecting productivity.

Limited Diversification

• India's mining sector is heavily concentrated in a few minerals, primarily coal and iron ore. 
• This lack of diversification makes the industry vulnerable to market shifts and restricts growth opportunities. 

Way Forward 

• Streamlining Regulations - creating a single-window clearance system to handle mining permits more efficiently.

• Encourage the adoption of modern mining technologies and practices to increase efficiency and reduce environmental impact.

• Promote exploration and development of a broader range of minerals to reduce dependency on a few commodities and enhance overall sector stability.

Conclusion

By addressing these areas, India can enhance the mining sector’s contribution to the GDP, aligning it more closely with its rich geological heritage while fostering sustainable and inclusive growth.

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