In a recent social media platform, X, Anil Agarwal, an Indian industrialist known as the “metal king,” highlighted the disparity between consumption growth and domestic production across several key sectors over the past three years.
Agarwal noted, “Growth of copper consumption was 22 percent while production of copper concentrate grew only 4 percent. For aluminium, consumption grew by 13 percent, but raw material bauxite only grew at 6 percent.”
He further pointed out similar trends in ferroalloys and steel, where demand outpaced domestic production of raw materials.
This imbalance, according to Agarwal, is leading to a steady increase in India's mineral and metal imports. He emphasised that natural resources already account for a significant portion of the country's import bill, stating, “Already 50 percent of our annual import bill, around USD 380 million out of USD 760 million, is on account of natural resources.”
With India's economy projected to grow rapidly, the demand for metals and oil is expected to accelerate further, potentially exacerbating the import situation.
Agarwal called for increased private sector involvement in mineral exploration and streamlined clearance processes. He suggested, “We should look at brownfield expansion of assets like Hindustan Copper, Bharat Gold Mine, and Hutti Gold Mines with private sector participation.”
The industrialist argued that leveraging India's substantial geological potential could reduce imports and create numerous job opportunities, particularly for less-skilled workers, potentially “eradicating poverty.”
Agarwal concluded by drawing parallels with other developed nations, stating, “Every country that has advanced has made optimal use of below-the-ground resources. We should also.”
The mining industry plays a pivotal role in India's economic development, providing essential raw materials for key industrial sectors. As a country rich in mineral resources, India is well-positioned to leverage its natural wealth to fuel industrial growth and enhance its global competitiveness, as per the India Brand Equity Foundation (IBEF) report.
India's mineral landscape is diverse and abundant, encompassing both metallic and non-metallic resources. This wealth of minerals forms the backbone of the nation's mining sector, which has shown significant potential for expansion and modernisation in recent years.
