In light of the upcoming Global Mining Summit in Kolkata, comment on the state of mining sector regulation in India. Is deregulation the way ahead?

The Global Mining Summit, which is India’s premier gathering for the mining sector, was held in Kolkata in November 2022. For the first occasion since 2018, delegates from India and the rest of the globe physically assembled to debate ambitious ideas and ambitious goals for India’s natural resources industry. This time, unlike other recent occasions, the Summit was held in a drastically different global environment, which gave it a special significance.

Significance:

  • With a rise in climate change and a number of geopolitical conflicts, such as the war in Europe with its worldwide repercussions, the globe is currently experiencing a number of significant calamities. The world is resetting, and India is following suit. 
  • The future geopolitics, geoeconomics, and India’s own economic growth trajectory will all be heavily reliant on mining and metals. 
  • Since the beginning of Covid, it has been clear that there is a danger associated with having one nation serve as the hub of industrial supply chains. 
  • The world is considering a China-plus-one approach for major global industrial supply chains. Consequently, India has a fantastic potential at this time.
  • India will need a significant increase in the supply of minerals and metals if it is to expand the manufacturing sector’s portion of its GDP from about 16% to 25% over the next five years. 
  • As essential for the majority of sectors, copper, aluminium, and even coal, we currently import sizable volumes of each. 
  • We are completely reliant on imports for new-age minerals such as nickel, lithium, and cobalt. 
  • Whether it’s for electric vehicles or infrastructure for renewable energy, the developing technologies that are assisting in a decarbonization of the global economy are very mineral-intensive. 
  • Risk exists because the majority of new-age minerals are now concentrated heavily in select regions.
  • The appeal for self-sufficiency, or Atmanirbharta, came straight from the Prime Minister early in the epidemic. In order to do this, policies have subsequently been modified or added in a variety of industries. 
  • The mining industry is well-positioned to work with the government to accomplish all of those objectives. Mining barely makes up 2% of India’s GDP at the moment. Given our geological potential, this might easily increase to 6%.

Way forward:

The government has to further deregulate this industry in order to take advantage of the possibilities it brings. To hasten project implementation, it must also quicken environmental and forest clearances.

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