India is third-largest producer of coal with a production of 565.6 million tonnes (MT) in FY14. It has the fifth-largest coal reserves in the world at 301.6 billion tonnes (BT). The country is expected to become the second-largest steel producer by 2015.
The metal and mining industry of India has recorded a strong 19.8 percent expansion in 2011 to touch US$ 141.9 billion and is expected to reach 305.5 billion by 2015. Production volumes have also been growing steadily over the years – during the period 2007-2011, it registered a CAGR of 5.2 per cent.
India’s iron and steel exports increased at a CAGR of 4.2 percent to US$8.1 billion over FY2008-13. It’s strategic location enables convenient exports to developed as well as the fast-developing Asian markets.
The Government of India has allowed 100 percent foreign direct investment (FDI) in the mining sector under the automatic route. Mining lease has been granted for a long duration of minimum 20 years and up to 30 years. It has also approved MMDR Bill (2011) to provide better legislative environment for investment and technology.
There is significant scope for new mining capacities in iron ore, bauxite, and coal. Untapped metal reserves in India are to the tune of 82 BT. Strong long-term demand from the steel industry is expected to further boost the iron ore industry.