India’s mining business is a key part of its industrial economy as of 2026. This is because of huge infrastructural growth and a shift toward vital minerals for renewable energy.
Size and Performance of the Market
Total Revenue: The Indian metals and mining business made about $285.28 billion in 2024, with an 11.7% CAGR over the past five years.
Contribution to GDP: The industry makes up about 2.2% to 2.5% of India’s total GDP and about 10% to 11% of the total industrial sector’s GDP.
India makes 95 minerals, 4 of which are fuel, 10 are metallic, and 23 are not metallic. In many areas, it is the best in the world:
The second biggest producer of coal, aluminum, and crude steel.
The third biggest maker of lime and zinc.
The fourth greatest producer of iron ore.
Important Parts of the Market
Coal: Still the biggest part, with production in FY25 topping 1 billion tons to fulfill rising energy demand (almost 70% of electricity generation).
Iron Ore: In FY25, production hit 289.4 MT, a 4.57% rise over the previous year, thanks to the expanding steel industry.
Critical Minerals: The government started the National Critical Mineral Mission in 2025 with a budget of ₹16,300 crore ($1.9 billion) to get lithium, cobalt, and rare earth elements.
Base Metals: The aluminum, copper, lead, and zinc industry is expected to make $17.6 billion by 2030, with aluminum being the biggest money maker.
The Best Mining Companies
Coal India Limited (CIL) is the biggest coal producer in the world and runs around 90% of India’s coal mines.
NMDC Limited is the biggest iron ore producer in India and an important exporter.
Vedanta Resources is a big company that works with zinc, lead, silver, and aluminum.
Hindalco Industries is a world leader in copper and aluminum.
Hindustan Zinc Limited is one of the world’s largest producers of zinc and lead.
Tata Steel runs big iron ore and coal mines that it owns.
Big Changes to Policy
The Mines and Minerals (Development and Regulation) Amendment Act, 2025 makes it easier to hold auctions for important minerals and makes them more open to private investors.
100% Foreign Direct Investment (FDI): Allowed through the automatic method for mining and exploring metal and non-metal ores.
Transparency Based on Auctions: Since 2015, more than 440 mineral blocks have been sold at auction, moving away from discretionary allocations.
Removal of Captive Distinction: Owners of captive mines (save for atomic minerals) can now sell up to half of what they mine each year on the open market.
Trends and Problems
Logistics Bottlenecks: A lot of bulk goods (33%) still have to be moved by road, which is driving up operational expenses.
Sustainability and Green Mining: Starting in FY25, new SEBI rules will require the biggest enterprises to report their “Scope 3” emissions. This will force the mining industry to switch to electric and hybrid fleets.
Digitalization: More and more businesses are using AI, 5G-enabled automation, and drone surveys to make their operations safer and more efficient.
