India's Mining Sector Faces Growing Challenges, Tech Adoption Key to Survival

India's mining and metals sector is facing growing challenges due to rising costs, lower ore grades, and geopolitical risks. To remain competitive, companies must adopt technology and improve resource efficiency and supply-chain resilience.

A report by FICCI-KPMG found that India's mining and metals industry needs a significant shift in technology adoption to stay ahead. The sector is entering a key phase of growth, supported by domestic demand, infrastructure expansion, and the government's Atmanirbhar Bharat and Viksit Bharat 2047 goals.

Competitiveness will increasingly depend on how efficiently companies use existing resources and convert them into higher-value products. The report called for greater use of low-grade ores, slimes, tailings, scrap, and other underutilised materials as feedstock to improve resource efficiency and support circularity across the sector.

Steel capacity is expected to reach 500 million tonnes, aluminium production is projected to grow nearly seven-fold, and copper demand is predicted to more than double by FY2047. The industry's growth targets will add to the need for greater efficiency across the value chain.