Record Growth in Mining Sector for FY 2023-24
Context:
The mining sector in India has witnessed remarkable growth in the fiscal year 2023-24, achieving record production levels in key minerals and aluminium.
- This growth underscores the sector’s crucial role in driving the country’s economic activities across various industries.
Relevance:
GS-03 (Economy)
Key Highlights:
- Index of Mineral Production:
- The index of mineral production for March 2024 was 156.1, marking a 1.2% increase compared to March 2023.
- For the entire FY 2023-24, the index rose by 7.5% over the previous fiscal year.
- Growth in Non-Fuel Minerals:
- Significant growth was recorded in the production of several non-fuel minerals in March 2024 compared to the same month in the previous year. These minerals include copper concentrate, gold, manganese ore, diamond, graphite, kyanite, sillimanite, limeshell, limestone, and magnesite.
- Iron Ore and Limestone Production:
- Iron ore and limestone, which together account for about 80% of the total MCDR mineral production by value, saw substantial growth.
- Iron ore production reached a record 277 million metric tons (MMT) in FY 2023-24.
- Limestone production also hit a record high of 450 MMT during the same period.
- Aluminium Production:
- Primary aluminium production increased from 40.73 lakh tons (LT) in FY 2022-23 to 41.59 LT in FY 2023-24, reflecting a growth rate of 2.1%.
Significance:
- Global Standing:
- India is now the second-largest producer of aluminium, the third-largest producer of limestone, and the fourth-largest producer of iron ore in the world.
- Economic Impact:
- The significant growth in the production of iron ore and limestone indicates robust demand in user industries such as steel and cement.
- The increase in aluminium production aligns with the strong economic activities in sectors like energy, infrastructure, construction, automotive, and machinery.
- Economic Indicators:
- The healthy growth trends in these key minerals and aluminium production highlight strong economic conditions and the expanding industrial base in India.
- These developments are critical indicators of the country’s industrial capabilities and economic resilience.
Conclusion:
The robust performance of the mining sector in FY 2023-24 not only enhances India’s position in the global market but also propels growth in various allied industries, contributing significantly to the overall economic development of the country.
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