Mining sector in India expanded at a dismal compound annual growth rate (CAGR) of 6.8 per cent during the last decade compared to 22 per cent in China for the same period, experts feel.
India could add around $210 billion to $250 billion or 6-7 per cent to the GDP and create 13-15 million jobs through direct and indirect contribution by 2025, a strategic paper titled ‘Unlocking the potential of the mining sector in India’, by the union mines ministry shows.
Specifically, mining sector has been witnessing negative growth in the last two years going by the Index of Industrial Production (IIP).
Experts want the government to take steps to promote growth in the sector. To promote investment in the sector, experts want government to adopt a stable and competitive royalty regime, which is benchmarked against global standards.
This is important because mining involves a long gestation period and massive investments, with uncertainty and risks, experts argue.
In India, mineral royalty is revised every three years. The last revision that happened in 2009 has put a huge amount of imbalance in the royalty regime, experts argue.