UPSC Previous Year Question | Mains GS1 | 2021

Despite India being one of the countries of the Gondwanaland, its mining industry contributes much less to its Gross Domestic Product(GDP) in percentage. Discuss.(Answer in 150 words)

Answer

Introduction

India’s Gondwana formations provide coal and several minerals, but geological endowment alone does not determine mining’s GDP contribution.

Reasons For Low Contribution

Reasons for low contribution

  • Large reserves are concentrated in remote, forested and tribal regions with weak rail, road, power and logistics connectivity.
  • Land acquisition, forest clearance, rehabilitation and environmental litigation delay projects.
  • Small-scale and informal mining, technological gaps and low beneficiation reduce productivity and value addition.
  • Policy uncertainty, illegal mining, royalties, global price cycles and import competition constrain investment.
  • Coal-dominated output has lower value per unit than advanced manufacturing and services.

Way Forward

Way forward

  • Transparent auctions, exploration incentives and district-level benefit sharing should be paired with strict ecological safeguards.
  • Mineral processing, recycling, rail connectivity and skilling can raise domestic value addition.

Keywords

Mining can support industrialisation, but inclusive and sustainable governance—not extraction alone—will convert geological wealth into GDP and livelihoods.

Topics: gondwanaland, indian geography, mineral economy, natural resources