Despite India being one of the countries of the Gondwanaland, its mining industry contributes much less to its Gross Domestic Product (GDP) in percentage. Discuss.

Sample Answer

Introduction

Gondwanaland is viewed as a complicated amalgamation of many pieces from various epochs. Many ore-formation processes occurred throughout Earth's history in a variety of geotectonic settings and hence these regions are endowed with rich mineral resources. But instead, India's mining sector provides just 2.2 percent to 2.5 percent of the country's GDP.

Body

Causes behind low contributions of mining industry in India’s GDP 

  • Increasing concerns related to environmental pollution, Loss of biodiversity, Water Pollution. 
  • Displacement and rehabilitation issues 
  • Lack of transparency in licensing/allocation leads to large scale cancellations. 
  • In comparison to other mining locations, India's mining sector is exposed to substantially higher taxes. High royalties, for example, or double taxes, to name a few examples.
  • Issues plaguing India’s Public sector like low skills, lack of modernization and insufficient capital investment.

Conclusion

In this regard, the government initiatives like Star rating of mining leases, mining surveillance system, District Mineral foundation and National Mineral Exploration Policy are a welcome steps which will go a long way in ensuring higher contribution of mining to India’s GDP.

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