Subject: Physical Geography

India's geological heritage as part of the ancient Gondwanaland supercontinent has blessed it with abundant mineral resources, yet the mining sector's contribution to GDP remains surprisingly modest. This paradox requires a careful examination of various contributing factors.

Reasons for Low Mining Contribution to GDP

A. Geological Constraints

• Despite Gondwanaland inheritance, many mineral deposits are located in difficult terrain and deep underground, making extraction costly and technically challenging.
• Complex geological structures require advanced exploration techniques and substantial investment.

B. Infrastructure and Technical Limitations

• Poor connectivity to mining sites through road and rail networks hampers efficient mineral transportation.
• Inadequate investment in modern mining technology and equipment affects productivity levels.
• Limited implementation of advanced exploration techniques like remote sensing and geospatial mapping.

C. Regulatory and Administrative Challenges

• Complex and time-consuming approval processes create bureaucratic bottlenecks.
• Multiple clearance requirements from various authorities delay project implementation.
• Environmental regulations, while necessary, often slow down mining operations.

D. Social and Environmental Factors

• Conflicts with indigenous communities over land acquisition and displacement.
• Environmental concerns leading to protests and project delays.
• Rehabilitation and resettlement issues affecting project timelines.

Recent Developments and Way Forward

A. Government Initiatives

• Implementation of National Critical Minerals Mission to secure strategic minerals.
• Introduction of Production Linked Incentive (PLI) schemes to boost domestic production.
• Alignment with 'Make in India' and 'Atmanirbhar Bharat' initiatives.

B. Sector Performance

• Record iron ore production of 289 MMT in FY 2024-25, showing 4.3% growth.
• Increased manganese ore (3.8 MMT) and bauxite (24.7 MMT) production.
• Primary aluminum production reaching 42 lakh tonnes.

The mining sector's contribution to India's GDP, currently at 2.5%, can be significantly enhanced through technological modernization, regulatory reforms, and sustainable mining practices, as demonstrated by successful mining nations like Australia and South Africa.