Business perspectives of mines and minerals regime

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.

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.