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.
It asks 3 things — 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 · Peninsular India, a Gondwanaland fragment, holds Gondwana coal and ancient ores, yet mining and quarrying gave only about 2.1 per cent of GVA in FY20.
Cover
- Paradox: rich Gondwana coal and iron, manganese, bauxite, mica against about 2.1 per cent of GVA (FY20).
- Exploration gap: deep deposits under-explored for want of technology and risk capital.
- Policy uncertainty: discretionary allocation and 2014 coal-block cancellations, until MMDR auction reforms (2015, 2021).
- Clearances and land: forest approvals, acquisition and Fifth Schedule areas delay projects.
- Illegal mining: Shah Commission findings led to bans and public opposition.
- Structure and imports: small unmechanised mines, weak logistics, little value addition; coking coal and critical minerals imported.
- Way forward: MMDR 2023 amendment and 24 strategic blocks auctioned; National Critical Mineral Mission; NMET; District Mineral Foundations.
Close with · The Gondwana inheritance is a geological fact; it becomes growth only when exploration, transparent auctions and tribal consent move together.
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”
- On 29 January 2025 (after this exam) the Union Cabinet approved the National Critical Mineral Mission with Rs 16,300 crore of expenditure and an expected Rs 18,000 crore of investment by PSUs and others.PM India: Cabinet approves National Critical Mineral Mission ↗“approved the launch of the National Critical Mineral Mission (NCMM) with an expenditure of Rs.16,300 crore and expected investment of Rs.18,000 crore by PSUs, etc.”
- As of the Cabinet note of 29 January 2025 (after this exam), the MMDR Act had been amended in 2023 to boost critical-mineral exploration and mining, and the Ministry of Mines had auctioned 24 strategic mineral blocks.PM India: Cabinet approves National Critical Mineral Mission ↗“Act, 1957, has been amended in 2023 to increase exploration and mining of critical minerals. Consequently, the Ministry of Mines has auctioned 24 blocks of strategic minerals.”
Question: UPSC's CS (Main) 2021, GS Paper I — paper ↗. Approach: Minimalist IAS, checked 16 Oct 2026 (how we verify) — UPSC publishes no model answers. ·
Model answer· 218words · Minimalist IAS
As a Gondwanaland fragment, peninsular India holds coal in Gondwana rocks and ancient ores of iron, manganese, bauxite and mica. Yet mining and quarrying gave only about 2.1 per cent of GVA in FY20 (Economic Survey 2020-21).
- Gondwana reserves
- thin exploration
- slow allocation
- delayed clearances
- small GDP share
Why the share stays small
- Exploration gap: deep-seated deposits remain under-explored for want of advanced technology and risk capital.
- Policy uncertainty: discretionary allocation and the 2014 coal-block cancellations stalled investment until auction reforms under the MMDR amendments of 2015 and 2021.
- Clearances and land: forest approvals, land acquisition and mining in Fifth Schedule tribal areas delay projects and provoke conflict.
- Illegal mining: the Shah Commission's findings led to bans and hardened public opposition.
- Weak structure: small, poorly mechanised mines, weak rail and port links and little value addition cap output.
- Import dependence: coking coal and critical minerals such as lithium and cobalt are largely imported.
Way forward
- Auctions: (since then) the MMDR Act was amended in 2023 for critical minerals, and 24 strategic blocks had been auctioned by January 2025.
- Missions: the National Critical Mineral Mission (Rs 16,300 crore, approved in January 2025), NMET exploration funding and District Mineral Foundations.
The Gondwana inheritance is a geological fact; it becomes growth only when exploration, transparent auctions and tribal consent move together.
Prepared by Minimalist IAS to the answer standard of Shivam Singh (mentor, 7 years) · facts checked against official sources (how we verify) · updated 16 Oct 2026. UPSC publishes no model answers: compare your structure and coverage with this, then write your own.
