Mining sector witnessing job losses; has potential to create about 5 crore jobs: FIMI to PM

By: |
September 08, 2019 3:45 PM

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

Mining sector,  job losses, FIMI, mining industry, Narendra Modi, emoplyment, 5 trillion economy,  GDPThe Indian mining sector employed approximately 23 lakh people in 2011-12.

Stressing that the mining industry is witnessing job losses, apex mineral body FIMI has sought the intervention of Prime Minister Narendra Modi for 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 of Indian Mineral Industries (FIMI) said in a letter to the Prime Minister dated September 5.

Also read: Modi govt’s mega investment push: How Rs 100 lakh crore would be invested in next 5 years

Asserting that in the past mining industry has emerged as the third largest employment generating sector, it said growth in the sector has always benefitted job creation in relatively backward states that have 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 USD 5 trillion economy and 8 per cent GDP growth, significantly higher contribution by mining sector in gross domestic product would be required, it said. But as of now, the contribution of mining sector in GDP is decreasing, FIMI said as it requested the Prime Minister’s intervention “for much needed fast-track reforms that could accelerate the growth in mining sector and create massive jobs in the country”.

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.

Do you know What is India expected to grow 10 pc during current fiscal: NCAER Director General Poonam Gupt,FinMin releases Rs 9,871 cr grant to 17 state, Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India? FE Knowledge Desk explains each of these and more in detail at Financial Express Explained. Also get Live BSE/NSE Stock Prices, latest NAV of Mutual Funds, Best equity funds, Top Gainers, Top Losers on Financial Express. Don’t forget to try our free Income Tax Calculator tool.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Public capex turns the corner; Central spending seen jumping 12% over pre-pandemic level: Report
2India, EU decide to expand clean energy cooperation
3Cap PIT rate at 15% sans exemptions: PHD Chamber