Mining industry to touch $30 bn by 2012

"Considering India's mineral resources, we believe there is strong potential for further development and scaling up of the country's mining industry. We believe that the mining industry could grow to $30 billion plus by FY'12 and reach 2.5 per cent of GDP, if India develops a conducive regulatory framework and attracts significant investment in exploration, mine development and infrastructure," a report by financial services firm Edelweiss stated.     

The report on metals and mining pointed out that India has immense natural resources and is ranked among top 10 globally for deposits in iron ore at 25.2 billion tonnes (BT), coal 257.4 BT and bauxite 3.3 BT, which constitute 3 per cent, 10 per cent, and 4 per cent respectively of the world's resources.     

The country also holds leading position globally in mica (No 1), barytes (No 2), chromite (No 4), kaolin (No 4), and manganese (No 7), the report said.     

"These are significant numbers and imply that India has the potential to develop a scaled up, world class mining industry. Some progress has been made and in iron ore, for instance, India ranks third amongst various exporting countries," it said.