UPSC Mains – Despite India’s association with Gondwanaland, its mining industry contributes a comparatively lower percentage to its Gross Domestic Product (GDP). Delve into the reasons for this phenomenon. (10M, 150 words)

Introduction

The mining industry encompasses activities related to extracting and processing natural resources from the Earth’s crust. India, as a Gondwanaland member, harbors abundant mineral resources like coal, iron, mica, and aluminum.

Body:

Reasons for the modest GDP contribution (1.75%) from the mining sector:

1. Limited Industrialization: Certain regions or sectors exhibit restrained industrialization, resulting in diminished production and GDP contribution due to factors such as insufficient infrastructure, technology, skilled labor, or investment.
2. Agriculture Dominance: While agriculture plays a pivotal role in India’s economy, its lower GDP contribution compared to industrial and service sectors affects the overall percentage, particularly in agriculturally dependent regions.
3. Informal Sector: India’s substantial informal sector, comprising unregistered and small-scale enterprises, may not be fully accounted for in GDP calculations, leading to a relatively lower overall GDP percentage.
4. Regional Disparities: Pronounced economic imbalances among states or regions impact the overall GDP percentage, with certain areas displaying stronger economic bases and higher contributions.

Mineral & mining belts of India include:

1. The Dharwar Rocks: Southern India, rich in iron ore, manganese, and bauxite.
2. The Chota Nagpur Plateau: Eastern India, is known for vast reserves of coal, iron ore, copper, mica, and limestone.
3. The Aravalli Range: Rajasthan and Haryana, are renowned for marble, gypsum, and asbestos.
4. The North-Eastern Belt: Assam and nearby areas are rich in coal, oil, and natural gas.
5. The Western Coast Belt: Maharashtra and Goa, notable for iron ore deposits.
6. The Vindhyan Range: Parts of Madhya Pradesh and Uttar Pradesh, known for limestone deposits used in cement production and various industries.

Way forward: 

1. Removal of end-use restrictions: Mines can now be utilized for various purposes as per the lessee’s discretion, eliminating the requirement for specific end-use reservations. 
2. Sale of minerals by captive mines: Captive mines, excluding atomic minerals, can sell up to 50% of their annual mineral production in the open market after meeting their own requirements, allowing them to generate additional revenue. 

 Conclusion:     

Hence, To efficiently utilize mineral resources and prevent mining accidents, it’s essential to streamline clearance processes and enforce mining regulations, including banning Rat-Hole mining and unscientific practices.

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