Abstract

This paper discusses mining industry as an informal sector of the Indian economy. Mining industry has great importance in any economy like Indian economy. We venture to understand, analyze and interpret the trends and significance of the mining industry in Indian economy. Mining has positive effects on the Indian economy in terms of government revenue, tax, employment generation, exports and net foreign exchange. In addition, negative impacts in terms of environmental degradation. Mining processes effect environment during both the mining activities and years after the mining is closed. Light has been put on policy issues, which are acting as impediments in the growth of mining industry. Other than policy issues, there are many other challenges like infrastructure, capacity building etc. Mining industry is facing which falls in the domain of this paper.

Introduction

Mining is a process in which minerals, which includes metal, coal, oil shale, gemstone, limestone, rack stone, gravel etc. These are required for different purposes like construction; medicines, power generation etc. are dogged out of the earth. There are mainly two types of mining. One is surface mining, in which mining is done by removing surface vegetation, dirt, soil and if necessary, layers of bedrock in order to reach buried ore deposits. Surface mining techniques areopen pit mining, landfill mining,and quarrying, stripping, mountain top removal. Second type of mining is sub-surface mining in which mining has done through digging tunnels or shafts into the earth to reach the buried ore deposits. Sub-Surface mining techniques are Drift mining, Slope mining, Shaft mining. Another kind of mining is in-situ leading method by which important elements and uranium has dogged out. Mining industry is fulfilling the demand of minerals and conducting the mining activities. It consists of both private and public sector. Mining has its own importance in any economy. India is blessed with rich amount of natural resources. India have stock of 87 minerals out of which 10 are metallic minerals, 47 non metallic minerals, 13 atomic minerals, 04 fuel minerals and 23 are minor minerals. It contributes 2 percent share of gross domestic product (GDP) and is positively correlated with the growth. The growth of mining industry leads to the growth of an economy. It has forward linkages with other industries of the economy. It provides row materials to the other industries such as power, steel, cement, chemicals, transportation, construction etc.

Mining industry in India, it hardly needs any justification that mining as a key industry is contributing to the growth of Indian industrialisation. It is benefiting the development of other important industries such as power, steel, cement etc. According to an analysis by Fedration of Indian Chamber of Commerce and Industries (FICCI), an increment of 1.2-1.4 percent and 3 percent in growth rate of Indian industrial production and in Indian GDP respectively, is channelized by one percent increment in the growth of mining and quarrying. In present times, mining is adding 2 percent in GDP and government of India has targetted to achieve the level of 5 percent of GDP. This call for a growth of 10-12 percent per annum in mining industry. However, the sector is suffering from negative growth trend from two consecutive years. In 2011-2012, shows a serious decline in growth attitude of minus 0.6%. Due to policy paralysis, mining sector has faced tough time during last years. Both at central and state levels there is issues of delay in matter clearance, land acquisition problems, corruption in auctions, benefits to government agencies those are poor in work efficiency as compared to private agencies, in assigning contracts. However, India has granted mining lease for 20-30 years.