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India’s mining sector has undergone a profound transformation over the past decade, fueled by ambitious reforms aimed at improving efficiency, transparency, and national security. From reducing import dependence to enabling the private sector, these changes are positioning India’s mining industry as a key player on the global stage.

Key Reforms Driving Sector Growth

The introduction of the auction regime has been central to this transformation. Since its launch, over 500 mineral blocks have been auctioned, including 119 in the past year alone. The amendments to the Mines and Minerals Development and Regulation Act (MMDRA) between 2015 and 2023 have created a more dynamic and competitive mining sector. With measures like uniform 50-year leases, seamless clearance transfers, and exploration licenses for MSMEs and start-ups, the environment for private investment has significantly improved.

Additionally, reforms aimed at enhancing state capacity and private sector agility have fostered a stronger partnership between the two. This collaboration, coupled with the financial support of the National Mineral Exploration Trust, has brought greater predictability and investor confidence, marking a turning point for India’s mining industry.

Strengthening India’s Role in Global Mineral Supply Chains

The launch of the National Critical Mineral Mission (NCMM) further strengthens India’s position in the global race for critical minerals like lithium, cobalt, and rare earth elements. India’s entry into offshore mineral mining, with lithium mines in Argentina and efforts by KABIL to acquire resources worldwide, expands the nation’s strategic mineral base. These developments are expected to drive India’s transition towards a circular economy and power essential sectors like energy and agriculture.

India’s collaborative efforts with the private sector, coupled with Centre-State cooperation, have enhanced revenue generation and deepened engagement across the nation. In just the auction system, states have earned around ₹4 lakh crore in revenue. The success of initiatives like the District Mineral Foundation (DMF) Trusts reflects the growing alignment between central and state governments, paving the way for continued progress.