Overview

India holds a fair advantage in production and conversion costs in steel and alumina. Its strategic location enables export opportunities to develop as well as fast-developing Asian markets. As of FY21, the number of reporting mines in India were estimated at 1,229, of which reporting mines for metallic minerals were estimated at 545 and non-metallic minerals at 684.

Market Size

Coal production in the country stood at 715.95 million tonnes (MT) in FY21. Between April 2021 and October 2021, coal production in India stood at 379.597 million tonnes (MT). Iron ore production in the country stood at 189 million tonnes in FY21. According to Directorate General of Commercial Intelligence & Statistics, in FY22 (until August 2021), iron ore exports reached US$ 2.23 billion, registering an increase of 21.8% YoY. In FY20, India had a total number of 914 steel plants producing crude steel. In FY21, India’s crude steel production stood at 102.49 million tonnes Production of aluminium stood at 3.65 MT in FY20. In value terms, aluminium export from the country stood at US$ 20.18 million in FY20. Aluminium production stood at 3,285,186 tonnes between April 2020 and January 2021.India is the world's second-largest coal producer as of 2021.

Road Ahead

There is a significant scope for new mining capacities in iron ore, bauxite and coal and considerable opportunities for future discoveries of sub-surface deposits. Infrastructure projects continue to provide lucrative business opportunities for steel, zinc, and aluminium producers. Iron and steel make up a core component for the real estate sector. Demand for these metals is set to continue given strong growth expectations for the residential and commercial building industry.