Mining can help create 6m more jobs by 2025
Financial Chronicle , Nov 09, 2017
The mining sector could contribute 7-8 per cent to India’s gross domestic product (GDP) and help it achieve 9 per cent growth in coming years as well as create 6 million more jobs by 2025.
India produces 87 minerals, which include 4 fuel minerals, 10 metallic minerals, 47 non-metallic minerals, 3 atomic minerals and 23 minor minerals. “But the country has seen continuous decrease of the mining sector share in GDP and that is holding the economic growth,” said Sunil Duggal, chief executive officer of HZL.
Speaking on the employment generation through mining sector, Duggal said the government has emphasised the need for development of natural resources to push industrial development, ancillary industries, employment and prosperity.
Duggal said in last decade, the contribution of mining sector in GDP has been stagnant
to nearly 1.2 per cent, which is highly alarming. The Indian mining sector grew at a CAGR of 7.3 per cent in the last decade compared to 22 per cent in China in the same period.
The mining sector in India employs a smaller percentage of population, just about 0.3 per cent against 3.8 per cent in South Africa, 1.4 per cent in Chile and 0.7 per cent in China. “It is also true that employment in the mining sector has grown at 3 per cent per annum rate over the last 10 years,” he said.
The McKinsey Global Institute report also has suggested that development of mining sector will be important if India has to achieve 7 per cent plus GDP growth. The sector can contribute an additional $125 billion to India’s output and $47 billion to its GDP by 2025.
According to a FICCI report, if India were looking to raise the mining sector’s share to 5 per cent of GDP in 20 years, this sector would be required to grow at 10-12 per cent rate annually.