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.
Approach · directive: “discuss”
What it asks · Explain why India's rich mineral base (coal, iron ore, bauxite, manganese, mica) yields a mining share of GDP well below its potential.
The question has 3 parts — answer each
- Establish the paradox: India's Gondwana inheritance of minerals against mining's small share of GDP
- Discuss the reasons: exploration gap, policy uncertainty, clearances and land, illegal mining, structure and logistics, import dependence
- Suggest how the gap between reserves and output can be narrowed
Open with · Mining and quarrying contribute under 3 per cent of India's GDP, far below resource-rich countries such as Australia, despite large reserves of coal, iron ore and bauxite.
Cover
- Exploration gap: much of the geologically favourable area is under-explored, and deep-seated deposits need advanced technology and risk capital that have been scarce.
- Policy uncertainty: discretionary allocation, the coal-block controversy and 2014 court cancellations delayed investment, until auction-based reforms (MMDR amendments of 2015 and 2021).
- Clearances and land: forest and environment approvals, land acquisition, rehabilitation and mining in Fifth Schedule tribal areas slow projects and provoke conflict.
- Illegal mining and social costs: the Shah Commission's findings on illegal ore mining, displacement and ecological damage led to bans and public opposition.
- Structure and infrastructure: many small, poorly mechanised mines, weak rail and port logistics and little value addition raise costs and cap output.
- Import dependence: coking coal, copper concentrate and critical minerals such as lithium, cobalt and nickel are largely imported; reserves alone do not ensure output.
- Way forward: National Mineral Policy 2019, exploration funding (National Mineral Exploration Trust), the National Critical Mineral Mission, and community benefit through District Mineral Foundations.
Close with · Potential is large, but turning reserves into output needs surer exploration, transparent allocation, timely clearances and value addition, balanced with tribal rights and ecology.
Add value (verified)
- Economic Survey 2020-21: the GVA of mining and quarrying in FY20 was Rs 3,93,102 crore at current prices, about 2.1 per cent of overall GVA. Economic Survey 2020-21, Volume 2, Chapter 9 (Industry and Infrastructure), p. 301 — Ministry of Finance ↗“mining and quarrying sector in FY20 was ` 3,93,102 crores (at current price), accounting for about 2.1 per cent of the overall GVA during FY20”
Question: UPSC's CS (Main) 2021, GS Paper I — paper ↗. Approach: Minimalist IAS, checked 30 Sept 2026 (how we verify) — UPSC publishes no model answers. ·
Model answer · 233 words (UPSC limit 150) · Minimalist IAS
As a Gondwanaland fragment, peninsular India holds coal-bearing Gondwana basins and ancient rocks rich in iron ore, manganese, bauxite and mica, yet mining and quarrying gave only about 2.1 per cent of GVA in FY20 (Economic Survey 2020-21), far below resource-rich Australia.
Why the share stays small
- Exploration gap: much favourable geology remains under-explored, and deep-seated deposits need advanced technology and risk capital that were long scarce.
- Policy uncertainty: discretionary allocation, the coal-block controversy and the 2014 court cancellations stalled investment until auction-based reforms under the MMDR amendments of 2015 and 2021.
- Clearances and land: forest and environmental approvals, land acquisition, rehabilitation and mining in Fifth Schedule tribal areas delay projects and provoke conflict.
- Illegal mining and social cost: the Shah Commission's findings on illegal ore mining led to bans and hardened public opposition.
- Structure and logistics: many small, poorly mechanised mines, weak rail and port evacuation and little downstream value addition raise costs and cap output.
- Import dependence: coking coal, copper concentrate and critical minerals such as lithium, cobalt and nickel are largely imported; reserves alone do not guarantee output.
Way forward
- National Mineral Policy 2019, National Mineral Exploration Trust funding, the National Critical Mineral Mission, and District Mineral Foundations sharing gains with affected communities.
The Gondwana inheritance is real but latent; turning reserves into output needs surer exploration, transparent allocation, timely clearances and value addition, balanced with tribal rights and ecology.
Written by Minimalist IAS from facts checked at source (how we verify) — a little fuller than exam length, so every part of the question is covered; in the hall, keep the structure and trim the detail. UPSC publishes no model answers: compare your structure and coverage with this, then write your own.