States must operationalise mineral resources for growth: Experts

Experts say unlocking bauxite resources and building downstream linkages can reduce imports, boost industrial growth, and create jobs in mineral-rich states like Odisha

Aluminium is increasingly becoming a strategic material for next-generation manufacturing, and states like Odisha must operationalise their bauxite resources at the earliest and link them to downstream value chains, opined experts at a seminar.

 

India imported an estimated 4.5 million tonnes (mt) of bauxite in FY25, with a foreign exchange burden of around Rs 4,000–5,000 crore, while finished aluminium imports crossed Rs 70,000 crore in FY26, said experts, underlining the wider economic cost of underutilising available mineral strength and a missed opportunity for jobs, industrial growth, and regional development.

 

Speaking at Think Change Forum (TCF), in partnership with Bhubaneswar City Knowledge Innovation Cluster Foundation (BCKIC), a flagship initiative of the Office of the Principal Scientific Adviser to the Government of India, R K Sinha, former controller general of the Indian Bureau of Mines (IBM), said Odisha has the resource base to become a far stronger industrial and alumina hub.

 

“The need of the hour is to responsibly unlock available bauxite reserves to reduce import dependence and create a more enabling pathway for downstream industrial growth. Equally important is the need to build trust at the community level by ensuring that local people are active participants in this development journey,” he said.

 

Policy experts and economists underlined that aluminium is rapidly becoming central to future industries, including electric mobility, renewable energy, aerospace, defence, semiconductors, and advanced manufacturing.

 

Prof Nilanjan Banik, economist and programme director at Mahindra University, said the policy architecture is directionally sound, but industrial outcomes depend on execution discipline. For Odisha to champion the industries of the future, he said, a bauxite-led industrial corridor will drive local economic transformation in mineral-rich regions.

 

“The gap between approvals and operationalisation continues to dilute the full developmental impact of industrial growth. The Lanjigarh refinery, among several other projects, is a case in point. Economic integration at scale can happen only when all stakeholders, including regulators, policymakers, industry, and communities, are aligned,” Banik said.

 

According to estimates, operationalising only three bauxite mining clusters could add around Rs 18,000 crore annually to the state’s GSDP, create nearly 15,000 direct jobs and over 50,000 indirect jobs, besides attracting close to $2.5 billion in downstream investment.

 

Speakers emphasised that the opportunity must be seen not in isolation, but as the foundation for a broader future-industries ecosystem, where Odisha’s competitiveness will depend on how well it connects mining, refining, manufacturing, logistics, sustainability, innovation, and skilled talent through an integrated industrial strategy.

 

Prof Mrutyunjay Suar, chairman of BCKIC, stressed that accelerating upstream activities such as mining and refining is essential not only for industrial output but also for enabling downstream manufacturing, MSME participation, and employment generation.

 

“Odisha can build stronger MSME and downstream depth through an aluminium corridor. It is essential to connect mineral strength with value-added manufacturing, local enterprise development, and innovation-led growth for the state’s industrial transformation to be future-ready,” he maintained.

 

Stating that innovation and technology are critical for competitiveness, Chinmay Sarangi, senior principal scientist at the Institute of Minerals and Materials Technology (IMMT), said India’s transition into advanced manufacturing will critically depend on advanced technology for materials innovation, particularly in aluminium and allied sectors.

 

“Odisha is uniquely positioned, but the real opportunity lies in moving beyond extraction to building research-led, technology-driven industrial capabilities that support high-value applications and critical metal value recovery with waste valorisation,” he pointed out.

 

From an industry standpoint, the focus was on enabling conditions for growth. Ravikant Muddu, chief operating officer of Innocule, said the challenge is not demand, but ecosystem readiness. For aluminium-led sectors to scale, the state needs predictability, infrastructure, and stronger downstream linkages, he said.

 

“Operational momentum in the value chain is essential if Odisha wants to move beyond being a supplier of raw materials and become a hub of value-added manufacturing,” he added, stressing that a strong MSME backbone will help generate meaningful employment.