Mining Sector Witnessing Job Losses; Can Create 5 Crore Jobs: Panel Tells PM Modi
An excavator loads iron ore onto a dump truck at an open pit mine. (Photographer: Vincent Mundy/Bloomberg)

Mining Sector Witnessing Job Losses; Can Create 5 Crore Jobs: Panel Tells PM Modi


Stressing that the mining industry is witnessing job losses, Federation of Indian Mineral Industries has sought Prime Minister Narendra Modi’s intervention in the form of much-needed reforms that would accelerate growth in the sector which has the potential to create employment opportunities for about five crore people.

“Like any other industry today in India, mining sector is also passing through a phase of lost employment opportunities... (with) government support and much needed reforms, the mining sector has the potential to provide employment opportunities to about 50 lakh people directly and create overall employment opportunities for about 5 crore people in India,” the federation said in a letter to the Prime Minister dated Sep. 5.

Stating that in the past mining industry has been the third-largest employment generating sector, it said growth in the sector has always created jobs in relatively backward states with lower per capita income than the national average like Jharkhand, Rajasthan, Odisha, Chhattisgarh and Madhya Pradesh.

In order to achieve India’s vision of a $5 trillion economy and 8 percent GDP growth, significantly higher contribution by mining sector in gross domestic product would be required, it said.

But as of now, mining sector’s contribution to GDP is decreasing, the federation said.

The Indian mining sector employed approximately 23 lakh people in 2011-12. Since the ratio of direct to indirect employment in the mining sector is 1:10, it is estimated that around 2.30 crore people gained employment through mining sector in the year 2011-12. This also included employment generated in secondary and ancillary sectors, it said.

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