Metals & Mining Industry in India (2025-2030)

Market insights:

The metals and mining industry involves the exploration, extraction, processing, refining, and distribution of metals and minerals. This industry provides raw materials essential for various sectors such as construction, manufacturing, energy, and technology. It encompasses a wide range of activities and commodities, including both ferrous and non-ferrous metals, precious metals, industrial minerals, and coal. Metals and minerals are essential for energy, transport, technology, and infrastructure. The metals and mining industry in India plays a crucial role in the country's economic growth and industrial development. It contributes significantly to the GDP, employment, and the country's infrastructure development.

Market trends:

Indian mining companies are increasingly exploring international partnerships to secure long-term supplies of minerals. This includes ventures overseas for coal and other minerals, enhancing India's position in the global mining market. Partnerships often center around adopting cutting-edge technologies like AI, IoT, and autonomous vehicles in mining operations.

Market drivers:

India ranks as the third-largest energy consumer globally, following China and the United States, leading to a consistent rise in the demand for power and electricity, which in turn drives an increase in coal consumption. The Indian government has taken steps to ensure a steady supply of coal through initiatives like the Coal Block Allocation Policy and Make in India campaign, aimed at boosting domestic production.

The demand for steel in FY25 as per ICRA is projected to rise by approximately 10% as the government's intensified focus on infrastructure development continues, resulting in more construction of roads, railways, and airports. Zinc demand in India is anticipated to double over the next five to ten years, fueled by significant investments in the infrastructure sector, including steel production, as noted by the International Zinc Association.

Key deterrents to the growth of the market:

India's mining sector is grappling with stringent environmental, social, and governance (ESG) requirements alongside complex regulatory frameworks. These challenges contribute to higher compliance costs and inefficiencies in operations. In India, high taxation rates on mining operations have led several international players to exit the market. The tax regime is seen as a significant barrier to attracting investments, with experts suggesting that future investments will heavily depend on a country's geological potential, political stability, and tax policies

Political instability globally can disrupt supply chains critical to mining operations. Companies face challenges related to logistics costs and inefficient transportation networks, which can hinder their ability to operate effectively and profitably