According to an official statement released on Friday, the mining industry in India expanded by 7.5% in FY24, with significant development observed in the production of limestone and iron ore. The mineral production index for the month of March was 1.2% higher year over year at 156.1.
“Showing a similar trend, limestone production has also surpassed the production record of 406.5 MMT achieved in FY 2022-23, increasing by 10.7 per cent to 450 MMT in FY 2023-24,” the statement continued.
The solid demand conditions in the user industries, specifically, are reflected in the growth in output of limestone and iron ore. cement and steel. Iron ore production increased by 7.4% from 258 million metric tonnes (MMT) in 2022–2023 to 277 million MMT in 2023–2024.
These development tendencies, when combined with the rapid rise in aluminium, indicate robust economic activity in user sectors like energy, infrastructure, construction, automotive, and machinery.
Primary aluminium production in the non-ferrous metals industry increased from 40.73 lakh tonne (LT) in 2022–2023 to 41.59 LT in 2023–2024. India ranks third globally in the production of lime, fourth globally in the production of iron ore, and second globally in the production of aluminium.
India’s mining sector demonstrated robust growth in the fiscal year 2023-24 (FY24), achieving a 7.5% increase compared to the previous fiscal year. This upsurge is primarily attributed to significant expansions in the production of key minerals such as iron ore and limestone, driven by heightened demand from core industries like steel, cement, and aluminum.
Iron Ore Production
Iron ore, a critical component in steel manufacturing, experienced substantial growth in FY24. Production reached 277 million metric tonnes (MMT), up from 258 MMT in the previous fiscal year, marking a 7.4% increase. This surge underscores the robust demand within the steel industry, reflecting the sector’s expansion and the broader economic momentum.
Limestone Production
Limestone production also saw a notable rise, increasing from 366 MMT during April-February of FY23 to 407 MMT in the corresponding period of FY24, an 11.2% growth. Limestone’s pivotal role in cement production aligns this growth with the infrastructure sector’s expansion, highlighting the material’s significance in construction and development projects.
Non-Ferrous Metals
In the non-ferrous metal sector, primary aluminum production reached 4.16 million tonnes in FY24, surpassing the previous record of 4.07 million tonnes achieved in FY23. This 2.5% growth reflects the aluminum industry’s resilience and its essential role in various manufacturing processes.
Coal Production
Coal production reached 997 million tonnes (MT) in FY24, marking a 12% growth compared to the previous year. In June 2024, provisional coal production stood at 84 MT, reflecting a 14.4% increase from 73 MT in the same month last year.
Monthly Performance
For March 2024, the index of mineral production was 1.2% higher year-on-year, standing at 156.1. This positive trajectory indicates sustained growth momentum in the mining sector, contributing significantly to the country’s industrial output.
Economic Implications
The mining sector’s expansion has had a cascading effect on various industries. The increased availability of essential raw materials like iron ore and limestone has supported the growth of the steel and cement industries, which are fundamental to infrastructure development. Additionally, the rise in aluminum production has bolstered the manufacturing sector, particularly in areas requiring lightweight and durable materials.
Government Initiatives
The Indian government’s policies aimed at enhancing mineral production have played a crucial role in this growth. Initiatives to streamline mining operations, coupled with efforts to attract investment into the sector, have created a conducive environment for expansion. These measures have not only increased production but have also improved the efficiency and sustainability of mining practices.
Future Outlook
Looking ahead, the mining sector is poised to maintain its growth trajectory. Continued investments in infrastructure and manufacturing are expected to drive demand for minerals. Moreover.
the government’s focus on self-reliance and boosting domestic production capacities is likely to further stimulate the sector. However, addressing environmental concerns and ensuring sustainable mining practices will be essential to balance economic growth with ecological preservation.
In conclusion, the 7.5% growth of India’s mining sector in FY24 underscores its vital role in the nation’s economic development. The significant increases in the production of iron ore, limestone, and aluminum highlight the sector’s responsiveness to industrial demands and its contribution to the overall growth narrative.
Group Media Publication
Construction, Infrastructure and Mining
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