100% FDI in Mining sector to reach new milestones
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100% FDI in Mining sector to reach new milestones

The rise in infrastructure development and automotive production is driving growth in the metals and mining sector in India. India has a vast mineral potential with mining leases granted for a longer duration of 50 years. As of FY22, the number of reporting mines in India was estimated at 1,245, of which reporting mines for metallic minerals were estimated at 525 and non-metallic minerals at 720.

In FY21, India’s crude steel production stood at 102.49 million tonnes (MT) and in September 2021, production of hot metal, crude steel, and saleable steel by SAIL stood at 1.55 MT, 1.44 MT and 1.46 MT, respectively.

India is the world's second-largest coal producer as of 2021 and the world's second-largest crude steel producer, 2020, with an output of 99.6 MT.

Coal production in the country stood at 715.95 MT in FY21 and in FY22 (until October), Coal India (CIL) produced 299.61 MT of coal—approximately 16.7 MT more than that in the same period last year In the first quarter of FY22, iron ore exports reached $1.7 billion, registering an increase of 168% YoY with its production in the country standing at 189 MT in FY21. According to the Directorate General of Commercial Intelligence & Statistics, in FY22 (until August 2021), iron ore exports reached $2.23 billion, registering an increase of 21.8% YoY.

The Government of India has allowed 100% foreign direct investment (FDI) in the mining sector and exploration of metal and non-metal ores under the automatic route, which will propel growth in the sector. Power and cement industries also aid growth in the metals and mining sector.

The Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) has been amended through the Mines and Minerals (Development and Regulation) Amendment Act, 2021, which has been notified on 28.03.2021, for giving a boost to mineral production.

The MCR, 2016 has been amended through Minerals (Other than Atomic and Hydro Carbons Energy Mineral) Concession (Fourth Amendment) Rules, 2021 on November 2, 2021.

The rise in infrastructure development and automotive production is driving growth in the metals and mining sector in India. India has a vast mineral potential with mining leases granted for a longer duration of 50 years. As of FY22, the number of reporting mines in India was estimated at 1,245, of which reporting mines for metallic minerals were estimated at 525 and non-metallic minerals at 720. In FY21, India’s crude steel production stood at 102.49 million tonnes (MT) and in September 2021, production of hot metal, crude steel, and saleable steel by SAIL stood at 1.55 MT, 1.44 MT and 1.46 MT, respectively. India is the world's second-largest coal producer as of 2021 and the world's second-largest crude steel producer, 2020, with an output of 99.6 MT. Coal production in the country stood at 715.95 MT in FY21 and in FY22 (until October), Coal India (CIL) produced 299.61 MT of coal—approximately 16.7 MT more than that in the same period last year In the first quarter of FY22, iron ore exports reached $1.7 billion, registering an increase of 168% YoY with its production in the country standing at 189 MT in FY21. According to the Directorate General of Commercial Intelligence & Statistics, in FY22 (until August 2021), iron ore exports reached $2.23 billion, registering an increase of 21.8% YoY. The Government of India has allowed 100% foreign direct investment (FDI) in the mining sector and exploration of metal and non-metal ores under the automatic route, which will propel growth in the sector. Power and cement industries also aid growth in the metals and mining sector. The Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) has been amended through the Mines and Minerals (Development and Regulation) Amendment Act, 2021, which has been notified on 28.03.2021, for giving a boost to mineral production. The MCR, 2016 has been amended through Minerals (Other than Atomic and Hydro Carbons Energy Mineral) Concession (Fourth Amendment) Rules, 2021 on November 2, 2021.

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