India is the world’s second-largest producer of crude steel. The steel and mining sectors together contribute approximately 2% to India’s GDP, supporting massive domestic infrastructure expansion and industrial manufacturing. India possesses the world’s fifth-largest coal reserves and ranks as the second-largest coal producer globally. The country’s mineral wealth spans major deposits of coal, iron ore, bauxite, chromite, copper, manganese, zinc, lead, and critical energy-transition minerals (such as lithium and rare earth elements).
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 thousands 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.
To meet surging electricity demand, India’s annual domestic coal production has crossed the 1 billion metric ton milestone (reaching over 1.05 billion metric tons in 2026). While domestic output now fulfills over 82% of national demand, India continues to import specialized coking coal (for steelmaking) and high-calorific thermal coal from key international suppliers, including Australia, Indonesia, South Africa, and Russia.
India’s mining regulatory landscape has been modernized under the Mines and Minerals (Development and Regulation) Amendment Acts, establishing transparent 50-year mining leases allocated through competitive e-auctions alongside 100% Foreign Direct Investment (FDI) for mining, exploration, and processing. The opening of commercial coal mining to private and foreign players, alongside legislative reforms for critical and deep-seated minerals, continues to attract global engineering firms, equipment manufacturers, and strategic investors into India’s resource sector.
Last updated: August 5th, 2026
