Despite India being one of the countries of the Gondwanaland, its mining industry contributes much less to…

Question

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

Ghissu Editorial · Accepted Answer

India's mining share stays near 2% of GVA despite its Gondwana geology because exploration is thin, allotment scandals and forest-tribal clearances stall projects, and processed value is booked as manufacturing. The 2015 auction reform and the 2025 National Critical Mineral Mission aim to close this gap.

**Introduction**

The Indian peninsula is a fragment of Gondwanaland, and about 98% of India's coal lies in Gondwana formations. Yet mining and quarrying contribute only about 2% of India's GVA, against about 10% in Australia, which shares the same shield rocks.

**Why the Gondwana Endowment Stays Underused**

SKETCH: comparison | Same Rocks, Different Share
a: India
b: Australia
- About 2% of GVA :: About 10% of GDP
- State-led exploration :: Private junior explorers
- Dense forest, tribal land :: Sparse population
- Ore for domestic use :: Export-led mining
- Services-heavy GDP :: Resource-heavy GDP

1. **Exploration deficit**: Only a fraction of about 6.88 lakh sq km of Obvious Geological Potential has been explored in detail, leaving deep-seated and critical minerals unmapped.
2. **Governance shocks**: Illegal mining under first-come-first-served allotment led to the Bellary (2011) and Goa (2012) bans and the cancellation of 214 coal blocks in Manohar Lal Sharma (2014).
3. **Land and consent**: Ores lie under forests and Fifth Schedule areas, where clearances, the Samatha (1997) ruling and the Niyamgiri verdict (2013) lengthen gestation.
4. **Value captured elsewhere**: High-ash coal and low-grade ore fetch little, and processing into steel or aluminium is counted as manufacturing.

**Reforms to Raise Mining's Contribution**

1. **Auctions and funds**: The MMDR Amendment of 2015 mandated auctions and set up District Mineral Foundations; the 2021 amendment ended the captive and merchant distinction.
2. **Critical minerals**: Exploration licences (2023) and the National Critical Mineral Mission (2025) target lithium and rare earths, while commercial coal auctions helped output cross one billion tonnes in 2024-25.

**Conclusion**

Geology gives India the endowment, but governance decides the dividend. Faster exploration, time-bound clearances and fair benefit sharing with mining communities can turn the Gondwana inheritance into Atmanirbhar mineral supply without ecological damage.

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

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