The index of mineral production of mining and quarrying sector in April 2012 was lower by 16.6% compared to that of the preceding month. The mineral sector has shown a negative growth of 3.1% during April 2012 as compared to that of the corresponding month of previous year.
The total value of mineral production (excluding atomic & minor minerals) in the country during April 2012 was Rs.17084 crore. The contribution of petroleum (crude) was the highest at Rs. 5671 crore (33%). Next in order of importance were: coal Rs 4849 crore, iron ore Rs.3593 crore, natural gas (utilized) Rs. 1330 crore, lignite Rs. 467 crore and limestone Rs. 309 crore. These six minerals together contributed about 95% of the total value of mineral production in April 2012.
The total mineral production in India was reported at 2,628 mines during FY11, as compared with 2,999 mines in the previous year. Of these mines, 574 are involved in the extraction of coal and lignite, 608 in metallic minerals and 1,446 in non-metallic minerals. Currently, Andhra Pradesh and Gujarat account for the highest number of mines in the country (377 and 372 mines, respectively).
Mineral production in India is primarily concentrated in the five states of Andhra Pradesh, Chhattisgarh, Jharkhand, Rajasthan and Orissa. In fact, these states together contributed more than 40% of the national mineral production in value terms in FY11.
The industries contribution to GDP is estimated at INR1,105 billion during FY11. However, the growth in this industry lags behind the country’s overall economic growth, primarily on account of infrastructure bottlenecks and the use of obsolete technology.
India is endowed with high reserves of iron ore, bauxite and coal; in-fact it is positioned among the leading ten countries globally for these ores. During FY10, the country was second-highest producer of barytes, chromite and talc/steatite/pyrophllite; third in coal and lignite; fourth in iron ore and kyanite/ sillimanite; fifth in manganese ore, crude steel and zinc; sixth in bauxite, eighth in aluminium and tenth in Magnesite.
The contribution of the mining industry to Indians GDP increased from 1.9% in FY10 to 2.3% (advanced estimates at 2004-05 prices) in FY11.
(Ernest & Young 2011)