What is the contribution of mineral based industries to GDP?(50 words)
Urgent..
_________
*No copy-paste.
Answers
Answered by
3
The development of natural resources dates back to about 50,000 years - in the Middle Paleolithic Chert mines of Nazlet Sabaha (or Safaha), a site on the western banks of the Nile River in Egypt. In India, Zinc mining dates back to over 3000 years in Rajasthan at Zawar.
India produces 87 minerals which include 4 fuel minerals, 10 metallic minerals, 47 non-metallic minerals, 3 atomic minerals and 23 minor minerals.
Mining was important in the ancient times and mining is important today and for the future survival of mankind. Development of natural resources is essential for sustaining economies as it gives birth to industrial development, ancillary industries, employment generation and prosperity. Employment generation is a key result but the end result is eradication of poverty.
But, in the last over a decade, the contribution of mining sector in GDP has been stagnant to nearly 1.2%, which is highly alarming. The Indian mining sector grew at a CAGR of 7.3% in the last decade compared to 22% in China in the same period. The mining sector in India employs a smaller percentage of India’s population, just about 0.3% as compared to 3.8% in South Africa, 1.4% in Chile and 0.7% in China. It is also true that employment in the Indian mining sector has grown at a rate of 3% per annum over the last 10 years.
The McKinsey Global Institute report suggests that development of mining sector will be important if India has to achieve 7% plus GDP growth. The report further says that mining sector alone has the potential to create 6 million additional jobs by 2025. The sector can contribute an additional USD 125 billion to India’s output and USD 47 billion to India’s GDP by 2025. About five years back, in the year 2012, mining sector accounted for about 3 million direct jobs and additional 8 million indirectly.
The mining sector contributed 3.4% of India’s GDP in 1992-93, which declined to 3% in 1999-2000 and further to 2.3% in 2009-10. To mention, every 1% increase in the growth rate of mining sector results in 1.2% to 1.4% increment in the growth rate of industrial production and correspondingly increase of 0.3% in the growth rate of India’s GDP.
According to a report by FICCI, if India is looking to increase the share of mining sector to 5% of the GDP in the next 20 years, this sector would be required to grow at the rate of 10-12% annually.
India produces 87 minerals which include 4 fuel minerals, 10 metallic minerals, 47 non-metallic minerals, 3 atomic minerals and 23 minor minerals.
Mining was important in the ancient times and mining is important today and for the future survival of mankind. Development of natural resources is essential for sustaining economies as it gives birth to industrial development, ancillary industries, employment generation and prosperity. Employment generation is a key result but the end result is eradication of poverty.
But, in the last over a decade, the contribution of mining sector in GDP has been stagnant to nearly 1.2%, which is highly alarming. The Indian mining sector grew at a CAGR of 7.3% in the last decade compared to 22% in China in the same period. The mining sector in India employs a smaller percentage of India’s population, just about 0.3% as compared to 3.8% in South Africa, 1.4% in Chile and 0.7% in China. It is also true that employment in the Indian mining sector has grown at a rate of 3% per annum over the last 10 years.
The McKinsey Global Institute report suggests that development of mining sector will be important if India has to achieve 7% plus GDP growth. The report further says that mining sector alone has the potential to create 6 million additional jobs by 2025. The sector can contribute an additional USD 125 billion to India’s output and USD 47 billion to India’s GDP by 2025. About five years back, in the year 2012, mining sector accounted for about 3 million direct jobs and additional 8 million indirectly.
The mining sector contributed 3.4% of India’s GDP in 1992-93, which declined to 3% in 1999-2000 and further to 2.3% in 2009-10. To mention, every 1% increase in the growth rate of mining sector results in 1.2% to 1.4% increment in the growth rate of industrial production and correspondingly increase of 0.3% in the growth rate of India’s GDP.
According to a report by FICCI, if India is looking to increase the share of mining sector to 5% of the GDP in the next 20 years, this sector would be required to grow at the rate of 10-12% annually.
Similar questions