Digging Deeper: India’s Minerals Sector Hits Historic Highs in 2024-25

India's metals and mining industry has posted a record-high performance in FY 2024-25 with major minerals and metals achieving their all-time production high. This rebound continues the firm momentum witnessed during the last fiscal, driven by strong demand from the core industries of steel, energy, infrastructure, construction, and auto-making.

Key Highlights

Iron ore production reached an all-time record of 289 million metric tonnes (MMT), a 4.3% rise over last year's 277 MMT. Iron ore alone contributes 70% of the aggregate mineral production value under the Mineral Conservation and Development Rules (MCDR), making India the world's fourth-largest iron ore producer.

Production of manganese ore increased by an impressive 11.8% to 3.8 MMT from last year's 3.4 MMT.

Bauxite production increased by 2.9%, reaching 24.7 MMT, from 24 MMT.

Lead concentrate production went up by 3.1%, from 381 thousand tonnes (THT) to 393 THT.

In the non-ferrous metals division, primary aluminium production reached a new high of 42 lakh tonnes (LT), from 41.6 LT. India is now the world's second-largest producer of aluminium.

Refined copper manufacturing saw a healthy 12.6% rise to reach 5.73 LT from 5.09 LT, getting India in the list of world's top ten producers.

Sectoral Impact and Economic Significance

The FY 2024-25 record output is primarily driven by strong user industry demand, particularly steel, which is a key driver of iron ore consumption. The rise in aluminium and copper production is an indicator of robust economic activity in energy, infrastructure, construction, automotive, and machinery industries. These developments are also in line with the government's policies aimed at expanding infrastructure, transitioning to energy, and the 'Make in India' manufacturing push.

Industry experts observe that such production peaks are evidence of continued investments, operational efficiency, and growing domestic as well as export demand. The mining industry's strong performance is likely to further strengthen India's economic growth path in the years to come.

Sources: Press Information Bureau, Adda247, Projects Monitor, Indian Masterminds, Economic Times Manufacturing, DD News