India is the world’s third-largest gold producer and second-largest copper producer, but its mining industry is suffering as the government struggles to find a way to pay for projects and attract foreign investors.
The mining sector has been one of the biggest beneficiaries of the Narendra Modi government, which has also taken steps to revive the domestic mining sector.
It is the fastest-growing sector of the economy and accounts for almost 40 per cent of GDP.
The government has promised to help the industry recover by creating a mining reserve fund to help it absorb losses.
The government also plans to create a new central bank that will oversee the mining industry and help the Reserve Bank of India (RBI) create a stable and inflation-free monetary policy, which it hopes will help the sector recover.
India is among the top 10 gold producers in the world, but the mining sector, which employs about 4.5 million people, is facing the biggest challenges as the mining boom has seen it collapse in the past year.
The mining sector lost 2.5 per cent in value over the past 12 months and it now stands at 2.3 per cent, the latest official data show.
The industry has been hit hard by mining slowdown, which in turn has hurt demand for metals and other commodities, including copper.
In June, the global copper market fell 6.6 per cent.
The mines are the world most popular and the biggest source of revenue for the government, said Rajiv Mehta, chairman of the Confederation of Indian Industry.
“The mining industry has become one of India’s major exports and also one of its biggest sources of revenue.
It was one of our biggest growth sectors before this boom,” he said.
While the mining slowdown has hurt the industry, the government is also working to diversify the sector by increasing foreign direct investment (FDI) and creating jobs.
According to government data, India has invested more than US$1.2 trillion in the mining and related industries since the mining ban was lifted in April last year.
In 2017-18, India invested $1.6 trillion in mining and its investments have more than doubled since 2015-16.
The ministry of mining and mining development has said the government aims to invest at least $1 trillion in all mining and metal sectors in the next five years.
According the latest figures, foreign investment in mining in India jumped to US$2.6 billion in 2016-17, up from US$600 million in 2015-2016.
However, the sector is expected to grow by only 3 per cent this year, according to the latest data.
In the past two years, the industry has experienced a slowdown as the global demand for precious metals has dropped sharply.
In September 2017, the world demand for gold fell to its lowest level in a decade.
Gold is the second-most valuable commodity after copper.
India has a growing mining industry with more than 80 mines and more than 600 employees.
The mines employ around 2.2 million people and have an annual turnover of US$4.4 billion.
India’s gold mines are mainly in the north-east, where the country’s gold production is most concentrated.
The Ministry of Mines estimates that in 2019-20, India will have over 2,000 mines, and by 2020-21, it expects to have about 4,200 mines, according the ministry.
The Indian government is currently trying to boost the domestic production of gold, copper, and other metals by expanding the mining licence-holding and licensing regime.
The Ministry of Resources and Mines has set up a committee to develop the mining strategy and aims to have it up and running by 2022.
The ministry has also set up an expert committee to help formulate a mining policy.
The committee is expected in 2018-19.
According with the government’s strategy, the mining policy would include a centralised regulatory framework and a number of measures to address the risks of the mining process and to ensure the safety of mines and the environment.
According, the ministry has set aside $100 million for projects aimed at addressing the mining risks, and the minister has also created a special committee to investigate the impact of mining on environment and biodiversity.
The minister has said that the ministry is working to create the National Investment Plan (NIP), a comprehensive plan to support mining, promote sustainable mining, improve public services and ensure economic growth.
The NIP is expected by 2019-2020.
The Government of India has also announced plans to invest $1 billion to improve the health of the environment and create a sustainable livelihood.