Non-fuel Minerals and Metals: India’s Trade and FDI Scenario

Abstract:

India has abundant mineral resources that have been partially converted into economically mineable resources. India is a leading producer of bauxite, iron ore, and zinc ore. While exports of non fuel minerals and ores (excluding diamond and precious stones) are US$ 6.6 billion(2019-20),the exports of metals and alloys (excluding precious metals) are much higher at US$ 23.2 billion (2019-20). Similarly, the imports of metals and alloys (excluding precious metals) are higher than non-fuel minerals and ores (excluding diamond and precious stones) at US$ 27.5 billion (2019-20) and US$ 6 billion (2019-20), respectively. The mining sector was opened up to 100 per cent Foreign Direct Investment (FDI) in 2000 to promote exploration and investment. However, from April 2000 to September 2021, the FDI inflows in the mining sector account only for about 0.54 per cent (US$ 3 billion) of the total FDI inflows in the country. In May 2020, the central government launched the Atmanirbhar Bharat Abhiyan to make India self-reliant and attract more investment in the mining sector. This discussion note portrays the trade export-import and price patterns of metals and minerals, including bauxite, iron ore, copper, lead, zinc, magnesite, and phosphates. The nominal and effective rates of minerals and metals are also computed. Finally, it summarises the status of foreign investment and the bilateral relations with other mining jurisdictions.