India: A Global Leader in Mineral Production

Why in news?

Currently, the country has taken its position among the leaders in the production of minerals globally, occupying high positions in the ranking of popular minerals. Currently the country remains the second largest aluminium producing nation, the third largest lime producer and the fourth largest iron ore producing nation in the whole world. These rankings testified the important role India plays in the world mineral industry as well as its increasing role in the industry.

Record-Breaking Mineral Production in FY 2023-24

• The year ended on March 31, 2023 marked record of mineral production in the fiscal year 2023-24 and laid down a defensive structure for further advancement.
• Iron ore and limestone were majorly identified as the pillar of India’s mineral industry since they contributed to 80% of the entire MCDR mineral production in terms of value.
• The production figures for these crucial minerals in FY 2023-24 were as follows:
  • Iron Ore: The latter stood at a combined 275 MMT.
  • Limestone: 450 MMT
• These numbers not only were quite valuable for the development of the Indian mineral industry but also speak of the proper demand by sectors that use these materials.
• This proves evident through the enhanced and huge production of such minerals to support the economic activities and growth of industries.

Iron Ore Production Soars

Continuing from the from FY 2023-24, the company has registered an impressive increase in the first quarter of FY 2024-25 in the gross, net sale, profit before tax and PAT supported by smooth operating iron ore production. Thus, its production rose from 72 MMT in the first quarter of the FY 2023-24 to the 79 MMT in the first quarter of the FY 2024-25 signifying an impressive 9%. 7% growth. This increase is testimony to the steel sector as well as a number of other connected fields.

Among derivatives, the steel industry the main user of iron ore, has been growing steadily due to activates in construction bills and infrastructural developments. The steep rise in production means supply of iron ore raw materials in line with the increasing demand in the steel industry thus promoting the sector and the economy of a country.

Limestone Maintains Steady Growth

• The production of limestone on the other hand, experienced steady increase albeit at a slower rate than in the past years From the table above, it is clear that the production of limestone has continued to grow, although at a slower rate than in the yester years.
• Output increased from 114 MMT in Q1 of FY 2023-24 to 116 MMT of Q1 of FY 2024-25 thereby registering an increment of 1. 8% growth. It means that there is a steady growth in the requirement of limestone, especially for cement companies and other industries using limestone.
• The cement industry is one of the major consumers of limestone, and has been growing continuously over the years on account of expansion of basic infrastructure and constructions.
• This is because limestone which is utilized in the cement production has been supplied in a consistent manner hence the cement industry is assured raw material supply hence enhancing its growth and by extension the economic growth.

Manganese Ore Sees Significant Jump

• On a positive note, production of manganese ore fared much better with tremendous increase as the year progressed. Production increased to 1 by a Yoy increase of 11% for the year.
• 0 MMT in Q1 FY 2024-25, up from 0. 9 MMT in the corresponding period of the preceding year and its major sources were as follows.
• This type of growth underlines the relevance of manganese in numerous uses across industries.
• In particular, manganese is an essential factor of steel production which growing demand correlates with the enlarged metal industry.
• The large scale production of manganese ore means that the raw material required for the production of steel is effectively available in ample quantity which in turn will help the steel industry and in fact the whole industrialization process of the country.

Non-Ferrous Metal Sector: Aluminium Leads the Way

• Non ferrous metal sector especially aluminium is indicated to be on a positive growth trend. According to provisional data:
• The company’s aluminium production ranked the second in the world and its further development in this field strengthens its position in the global market and testifies to the existence of increased internal consumption of the mentioned material.
• Light weight joined with high strength, Aluminium is utilized in car, air plane and building industries and so on. Growth in aluminium production is also persistent, thus providing continuity of this material’s supply and further boosting the development of these industries in the country’s economy.

Economic Implications and Industry Outlook

• The increase in mineral production of particularly iron and limestone reveal healthy demand factor in the sectors that use these minerals such as steel and cement.
• This growth, coupled with the positive trends in aluminium production, points towards continued strong economic activity in various sectors, including:
  • Energy: The ever rising need for energy fuels the construction of power plants and other related facilities hence the need to mine for energy minerals such as coal and uranium.
  • Infrastructure: Many on-going infrastructure development projects such as roads, bridges, railways consumes construction materials for construction of bridges for transportation of minerals such as iron ore, limestone, cement, etc.
  • Construction: Cement, limestone, and steel are fundamental materials in the construction business hence creating demand for these mineral hence supporting economic development.
  • Automotive: Automotive industries use raw materials like aluminium and steel to build automobiles; therefore, they drive the consumption of these materials hence the expansion of the industry.
  • Machinery: Machinery sub-sector entails use of steel and aluminum among others to manufacture different kinds of machinery and equipment hence driving demand of such minerals and hence growth of the sub-sector.

• Thus, these growth trends do seem to point to a positive picture of India’s industrial and economic prospects in the next quarters.
• Therefore, relying on the commodity’s performance, the mineral sector plays a vital role in representing the economy headed for sustainable industrial and infrastructure expansion.
• Thus, increasing the position of India in the world market of mineral production the country is confidently moving to further economic development based on the mineral industry.

Conclusion

• India has emerged as the 2nd largest aluminium producer in the globe, the 3rd largest lime producer in the globe and the 4th largest iron ore producer globally thus playing a very crucial role in the obliged Mineral Industry.
• The enhanced production records of the FY 2023-24 and increased figure in the Q1 FY 2024-25 show that there is a growing demand in the key industries and stress the importance of mineral sector for the financial development.
• Since the country is charging forward in proving ground for being one of the front-line producers of minerals in the international level, the Indian Economy is well on its way to rise and blossom with the support of the mineral sector.

FAQS

Q1: What are India’s rankings in global mineral production?
Ans: India ranks as the 2nd largest aluminium producer, the 3rd largest lime producer, and the 4th largest iron ore producer in the world.

Q2: What were the record-breaking mineral production figures in FY 2023-24?
Ans: In FY 2023-24, India produced 275 million metric tons (MMT) of iron ore and 450 MMT of limestone, representing significant achievements for the country’s mineral sector.

Q3: How did iron ore production perform in Q1 FY 2024-25?
Ans: Iron ore production increased by 9.7%, rising from 72 MMT in Q1 FY 2023-24 to 79 MMT in Q1 FY 2024-25, reflecting strong demand from the steel industry.

Q4: What was the growth in limestone production in Q1 FY 2024-25?
Ans: Limestone production grew by 1.8%, from 114 MMT in Q1 FY 2023-24 to 116 MMT in Q1 FY 2024-25, indicating sustained demand from the cement industry.