India's Mining Sector Seeks Efficiency Amid Global Challenges

India's mining and metals industry faces significant challenges in its quest to compete globally. A recent report by FICCI-KPMG warns that rising costs, declining ore grades, geopolitical uncertainty, decarbonisation requirements, and competition for critical minerals are changing the conditions for growth.

The report argues that the sector's future will depend on performance across the entire value chain, rather than production volumes alone. To improve resource efficiency and increase material recovery, companies can use low-grade ores, slimes, tailings, scrap, and other underutilized materials as productive feedstock.

Union Minister Jitendra Singh launched a FICCI conference on digitalization, AI, automation, and technology integration in mining and metals. Ranjan Dhar, Co-Chair of FICCI's Steel Committee, emphasized the need for sustained investment in technology adoption to improve efficiency and bring Indian operations closer to leading global standards.

The industry expects significant growth: steel capacity is projected to reach 500 million tonnes by FY2047, aluminium production is expected to grow nearly seven-fold, and copper demand is projected to more than double. However, the report cautions that meeting this growth competitively will require more than just extracting additional minerals and producing more metal.