{"id":160033,"date":"2022-01-09T15:11:37","date_gmt":"2022-01-09T09:41:37","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=160033"},"modified":"2022-01-10T16:45:45","modified_gmt":"2022-01-10T11:15:45","slug":"answered-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","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/answered-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\/","title":{"rendered":"[Answered] 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."},"content":{"rendered":"
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India being a\u00a0<\/span>part of Gondwanaland,<\/span><\/b>\u00a0is richly\u00a0<\/span>endowed with mineral wealth<\/span><\/b>\u00a0such as\u00a0<\/span>coal, iron, mica, aluminium etc<\/span><\/b>., however, mining sector of India\u00a0<\/span>contributes only 2.2% to 2.5%<\/span><\/b>\u00a0to the GDP of the country. Reasons for\u00a0<\/span>low contribution<\/span><\/b>\u00a0are as under:\u00a0<\/span>\u00a0<\/span><\/p>\n

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  1. Minerals are located in\u00a0<\/span>forested tribal areas. Democratic polity with a mandate for welfare\u00a0<\/span><\/b>creates conflicting priority of mineral exploitation<\/span>\u00a0<\/span><\/b>and tribal development.<\/span>\u00a0<\/span><\/li>\n
  2. Multiple clearances and Legal hurdles<\/span><\/b>: The mining sector ails from the\u00a0<\/span>requirement of multiple clearances<\/span><\/b>, which makes the sector unviable\/unprofitable. For example,\u00a0<\/span>Environmental\/forest clearances<\/span><\/b>. The mining sector is also\u00a0<\/span>susceptible to various legal pronouncements<\/span><\/b>. For example,\u00a0<\/span>SC judgement on coal block<\/span><\/b>\u00a0allocation affected coal mining output.<\/span>\u00a0<\/span><\/li>\n
  3. High levies<\/span><\/b>: Mining sector in India is subjected to\u00a0<\/span>much higher levies<\/span><\/b>\u00a0than other mining geographies. For example,\u00a0<\/span>high royalties, double taxation etc.<\/span><\/b>\u00a0<\/span><\/li>\n
  4. Poor exploration<\/span><\/b>: Highly\u00a0<\/span>restricted licensing regimes<\/span><\/b>, disincentivises private players to indulge in\u00a0<\/span>mineral exploration<\/span><\/b>.<\/span>\u00a0<\/span><\/li>\n
  5. Monopoly of PSUs<\/span><\/b>: Mining sector suffers from problem of\u00a0<\/span>unproductive usage of assets<\/span><\/b>, due to\u00a0<\/span>monopoly of PSUs<\/span><\/b>. For example, coal India\u2019s monopoly in coal sector.<\/span>\u00a0<\/span><\/li>\n
  6. Slow modernisation<\/span><\/b>: India\u2019s mining sector has been slow in adopting productive global trends. For example, smart mines etc.<\/span>\u00a0<\/span><\/li>\n<\/ol>\n

    The mining sector of India, hold immense potential<\/span><\/b>\u00a0to reduce import dependence and hurl industrial development. In this light\u00a0<\/span>faster administrative clearances<\/span><\/b>\u00a0need to be ensured and\u00a0<\/span>security challenges like\u00a0Naxalism\u00a0etc<\/span><\/b>., in the mining belt need to be checked.<\/span>\u00a0<\/span><\/p>\n

    \u00a0<\/span><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

    India being a\u00a0part of Gondwanaland,\u00a0is richly\u00a0endowed with mineral wealth\u00a0such as\u00a0coal, iron, mica, aluminium etc., however, mining sector of India\u00a0contributes only 2.2% to 2.5%\u00a0to the GDP of the country. Reasons for\u00a0low contribution\u00a0are as under:\u00a0\u00a0 Minerals are located in\u00a0forested tribal areas. Democratic polity with a mandate for welfare\u00a0creates conflicting priority of mineral exploitation\u00a0and tribal development.\u00a0 Multiple clearances… Continue reading [Answered] 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.<\/span><\/a><\/p>\n","protected":false},"author":10308,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[9],"tags":[10606],"class_list":["post-160033","post","type-post","status-publish","format-standard","hentry","category-public","tag-mains-2021-gs-1-solutions","entry"],"jetpack_featured_media_url":"","views":{"total":97,"cached_at":1698381674,"cached_date":1698471848},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/160033","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10308"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=160033"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/160033\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=160033"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=160033"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=160033"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}