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. (UPSC 2021, 10 Marks, )

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India, as a country that was once part of the Gondwanaland, has a rich geological history and abundant mineral resources. However, its mining industry contributes relatively less to its Gross Domestic Product (GDP) in percentage terms. This can be attributed to several factors that are discussed below.

India’s Geological Background as Part of Gondwanaland

• Gondwanaland Connection: India was once part of the supercontinent Gondwanaland, which included regions like South America, Africa, Antarctica, and Australia.
• Rich in Minerals: As a part of Gondwanaland, India has vast mineral reserves, particularly coal, iron ore, manganese, bauxite, and other resources concentrated in the Indian shield regions.
• Geological Stability: The ancient geological formations have contributed to significant coal reserves and other minerals, particularly in regions like Chhota Nagpur Plateau, which is rich in iron ore and coal.

Low Contribution of Mining to India’s GDP

• Underutilization of Resources: Despite India’s rich mineral reserves, the contribution of the mining sector to GDP is relatively low (around 2-3% of GDP in recent years).
• Lack of Modern Technology: India's mining sector suffers from the lack of advanced technology, which hampers the extraction of resources efficiently.
• Regulatory Issues: Stringent environmental and land acquisition laws make it difficult for the mining industry to grow at a fast pace.
• Dependency on Other Sectors: India’s economy is heavily driven by services and manufacturing, which contribute significantly more to the GDP than mining. Agriculture and IT also dominate.
• Export-Oriented Nature: Much of India’s mining output, especially iron ore and bauxite, is exported without significant value addition within the country, limiting the contribution to the domestic GDP.
• Environmental Concerns: Mining activities have been restricted in many areas due to environmental concerns and issues related to deforestation and water pollution.
• Illegal Mining and Governance Issues: Illegal mining practices and corruption within the sector also affect its overall growth and contribution to the economy.