India’s mining industry is valued at $305.5 billion, and the country is expected to become the world’s second largest producer of crude steel by 2016. Its steel sector is valued at $57.8 billion, contributing about 2% to its GDP. India has a tenth of the world’s coal resources, placing it third after the U.S. and China. The country’s prime mining locations and the growing need for coal-fueled power generation contribute to the success of India’s mining industry. India’s main mineral resources include coal, nickel, iron ore, diamond, copper, chromium, chromite, and bauxite.
Some of India’s oldest mines are located in Zawar, which is now a township in Rajasthan run by Hindustan Zinc Ltd. Others include the Khetri mine, now owned by Hindustan Copper Ltd., and gold deposits in the state of Karnataka. Today, India has 2,628 mines located in the states of Gujarat, Andhra Pradesh, Jharkhand, Madhya Pradesh, Rajasthan, Karnataka, Orissa, Tamil Nadu, Maharashtra, Chhattisgarh, and West Bengal.
The most prominent domestic mining companies are Coal India Ltd., Hindustan Zinc Ltd., National Aluminum Company Ltd., and National Mineral Development Corporation. As the world’s largest producer of coal, Kolkata-based Coal India Ltd. produces 80% of India’s coal and accounts for 76% of thermal power generation in the country. Hindustan Zinc Ltd. specializes in the production of zinc, lead, silver, and cadmium. Based in the eastern state of Odisha, National Aluminum Company Ltd. operates under the federal Ministry of Mines and refines bauxite and aluminum. The National Mineral Development Corporation is the country’s largest producer of iron ore.
India’s coal consumption is projected to increase to about 1.3 billion tons by 2040. India’s coal production reached 556 million tons in 2014. However, this does not meet all of India’s demand so the country imports from Indonesia, Australia, and South Africa. Imports have grown to 200 million tons and are expected to reach 300 million tons in 2040.
India’s mining industry is appealing to foreign investors because of mining leases lasting 20 to 30 years, high-value mineral exploration, and high domestic demand for energy. In the past decade, London-based Vedanta Resources invested $30 billion in the sector. Japan’s JFE Steel Corporation invested $1 billion into India-based JSW Steel Ltd. Australia’s Rio Tinto PLC plans to invest $500 million in diamond mining operations in Madhya Pradesh and $2 billion in iron ore projects in Odisha.
Last updated: December 26th, 2025
