India is rich in natural resources, with a geological makeup that is similar in many ways to that of countries such as Canada, Australia, Brazil, South Africa, Chile and Mexico. With the world’s third-largest mineral reserves, India has the potential to employ about ₹1.2 trillion (US$18.5 billion) in capital, including ₹500 billion in foreign direct investment (FDI), in the mining and minerals sector.
FDI in mining, exploration of metallic, non-metallic and permitted precious ores and related sectors including manufacturing of equipment is permitted up to 100%, subject to the Mines and Minerals (Development & Regulation) Act, 1957.
Mining is expected to generate an additional 6 million jobs in India within the next decade, shifting the scales of poverty towards empowerment and accelerating job creation by over 10% apart from saving nearly US$58 billion in foreign exchange on account of spending on imports of minerals including iron ore, coking coal and thermal coal by 2025.
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Manoj Kumar is the founder and managing partner at Hammurabi & Solomon. The firm’s policy and regulation desk has been working extensively on both national and state policy reforms in the minerals sector.
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