Answer: 

Introduction:

India is one of the countries of the ancient supercontinent, Gondwanaland, which is known for its rich mineral deposits. Mining sector is an important contributor to India’s economy, with its contribution to India’s Gross Domestic Product (GDP) ranging from 2.3% to 2.9% over the last decade.

Body:

The mining sector in India has historically contributed a relatively low percentage to the country’s Gross Domestic Product (GDP) compared to other sectors.

Reasons for low contribution:

• Modernization and technological advancements: The mining industry in India is predominantly carried out by small-scale miners who use outdated technology and equipment, resulting in low productivity and efficiency. The lack of modernization and technology also hinders the exploration and extraction of minerals in the country.E.g J

• Labour laws framework: The mining industry in India is subject to various regulations, including environmental and labor laws, which can make it difficult for companies to operate efficiently.
• Complex regulatory framework: Obtaining permits and approvals for mining activities can be a cumbersome and time-consuming process, leading to delays and reduced productivity.
• Slow pace of land acquisition: Land acquisition in India is a complex and time-consuming process, and the mining industry often faces challenges in acquiring land for its activities. This can lead to delays in the implementation of mining projects, resulting in lower productivity and output.
• Lack of investment: The mining sector requires significant investment in exploration, technology, and infrastructure, which can be a deterrent for investors. The lack of investment also affects the value addition in the sector, leading to the export of raw minerals without processing them, which reduces their value and contribution to India’s economy.

Conclusion:

India’s mining industry has significant potential to contribute to the country’s economy given its rich mineral deposits. The government needs to address these challenges and create a conducive environment for investment in the sector, technology upgradation, skill development, and sustainable mining practices can help enhance the mining sector’s contribution to India’s GDP and overall economic growth.