2021 GS1 Answer

Q. 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.

Question from UPSC Mains 2021 GS1 Paper

Model Answer: 

India’s Gondwanaland Heritage and Mining Industry’s GDP Contribution

India’s connection to Gondwanaland, an ancient supercontinent, suggests significant mineral wealth. However, the mining industry’s contribution to India’s GDP remains relatively low. This paradox warrants examination.

Geological Background and Mineral Resources

• India’s Gondwana heritage endowed it with diverse mineral deposits.
• Notable resources include:
– Coal (Jharkhand)
– Iron ore (Odisha)
– Bauxite (Madhya Pradesh)

Current State of India’s Mining Industry

Mining sector contributes approximately 2% to India’s GDP.
• This is lower compared to other Gondwana-derived nations like Australia (~10%) and South Africa (~8%).

Factors Contributing to Lower GDP Share

1. Regulatory challenges:
– Complex licensing processes
– Frequent policy changes (e.g., coal block allocations)

2. Environmental concerns:
– Stricter regulations in ecologically sensitive areas
– Balancing development with conservation (e.g., Western Ghats mining restrictions)

3. Infrastructure limitations:
– Inadequate transportation networks
– Underdeveloped processing facilities

4. Technological gaps:
– Limited use of advanced exploration techniques
– Lower mechanization in small-scale mining

5. Economic diversification:
– Rapid growth in services sector
– Focus on manufacturing (e.g., “Make in India” initiative)

Potential for Growth in Mining Industry

• Vast unexplored mineral reserves
• Recent policy reforms to attract investment
• Emphasis on sustainable mining practices

Conclusion

Despite Gondwana heritage, India’s mining sector faces multifaceted challenges. Balanced approach needed for sustainable growth and increased GDP contribution.

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