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India: Mining and Quarrying
Country Study > Chapter 6 > Character and Structure of the Economy > Industry > Mining and Quarrying


For a country of its size, India does not have a great deal of mineral wealth. Mining accounted for less than 2 percent of GDP in FY 1990. Nonetheless, iron and bauxite are found in sufficient quantities to base industries on their extraction and processing. Assessment of the country's resources by the Geological Survey of India is still far from complete in the mid-1990s, and observers do not rule out the possibility of important new finds.

In 1992 reserves of iron ore were estimated at among the world's largest -- at 19.2 billion tons. Extraction capacity is 67 million tons of ore per year, but only 53 million tons were produced in FY 1992. About 60 percent of output is exported, mainly to the South Korea and Japan. The largest iron ore mining project is at Kudremukh, Chikmagalore District, Karnataka. India also has abundant bauxite, the main mineral source for aluminum. Reserves are estimated at about 2.7 billion tons, or 8 percent of the world total. In FY 1991, 512,000 tons of aluminum were produced, of which 61,000 tons were exported. Most bauxite mines are in Bihar and Karnataka. India is the world's third largest producer of manganese, and its mines extracted around 1.4 million tons of manganese ore per year in the early 1990s from a total estimated reserve of 180 million tons. India also has significant reserves of copper, estimated at 422 million tons. However, the production of copper, at 46,000 tons in FY 1991, fell well short of domestic demand. Most copper mines are in Bihar and Rajasthan. Smaller amounts of lead, zinc, and mica are also produced.

Ownership and the power to grant mineral concessions generally have rested with the state governments. The central government, however, has exerted considerable influence over such leases, particularly in cases of important and strategic minerals. In fact, most mining of important and strategic minerals is undertaken by central government enterprises in which states sometimes hold part ownership. In the early 1990s, uranium ore was mined, milled, and processed only in Bihar; rare earths -- including mineral sands, monazite, ilmenite, rutile, zircon, rare earths chloride, and others -- were mined in Tamil Nadu, Kerala, and Orissa. During this period, the central government was attempting to increase the private sector's share of this industry.

Data as of September 1995

Last Updated: September 1995

Editor's Note: Country Studies included here were published between 1988 and 1998. The Country study for India was first published in 1995. Where available, the data has been updated through 2008. The date at the bottom of each section will indicate the time period of the data. Information on some countries may no longer be up to date. See the "Research Completed" date at the beginning of each study on the Title Page or the "Data as of" date at the end of each section of text. This information is included due to its comprehensiveness and for historical purposes.

Note that current information from the CIA World Factbook, U.S. Department of State Background Notes, Australia's Department of Foreign Affairs and Trade Country Briefs, the UK's Foreign and Commonwealth Office's Country Profiles, and the World Bank can be found on

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