Fitch Solutions revises down mineral production growth forecasts for India

Fitch Solutions on Wednesday said it has revised down the mineral production growth forecasts for India and stressed that despite mining activities remaining operational in the country during the lockdown, the various other restrictions are hampering output.

"We have broadly revised downwards India's mineral production growth rates per mineral by an average of 4.0 per cent from previous rates, and will likely revise them down further in the coming week," Fitch Solutions said in a statement.

Despite mining activities remaining operational in India during its 21-day lockdown, most mines are operating at capacities of 40 per cent or less according to local news reports, it said.

Mining of iron ore, coking and thermal coal, limestone, dolomite, manganese, chromite and some other ferrometals have been excluded from restrictions enforced during the lockdown as these commodities have been termed as critical, it said.

"However, due to restrictions on inter-state transport, and companies reducing their workforce voluntarily for the safety of operations, mineral production is being hampered," it said.