Vedanta contributes 0.40% to India GDP, says study

By: |
Updated: Jul 31, 2019 4:52 PM

In terms of job creation, Vedanta is creating nearly 1 million man years of employment yearly through all its group companies. This translates into 17 job opportunities in India for every direct employee in Vedanta.

Vedanta, India GDP, employment, Institute For Competitiveness, job opportunities in India, economy newsThe report further said that India managed to emerge as a net exporter of copper since 2012 but due to the closure of Tuticorin plant, this trend was offset in 2018-19. (reuters)

Mining giant Vedanta Ltd contributes around 0.40 per cent or Rs 67,554 crore to India’s GDP through its operations, according to a study released on Wednesday. Taking into account the company’s suppliers and their ability to generate employment, the indirect impact is another Rs 1,69,550 crore or 1 per cent of GDP, the study conducted by Institute For Competitiveness (IFC) to asses the economic and social impact of Vedanta said. In terms of job creation, Vedanta is creating nearly 1 million man years of employment yearly through all its group companies. This translates into 17 job opportunities in India for every direct employee in Vedanta.

“The induced impact, which also takes into account the consumption patterns of how employees and suppliers spend their wages in the consumer economy, generating jobs and impacting GDP is equivalent to 2.20 per cent of India’s GDP,” the IFC said. In rupee terms, the contribution of Vedanta, which has seven companies in commodities like aluminium, zinc, oil and gas, copper and iron ore works out to Rs 3,74,000 crore.

The report further said that India managed to emerge as a net exporter of copper since 2012 but due to the closure of Tuticorin plant, this trend was offset in 2018-19. “The impact of this was seen on India’s import bill. The production of Sterlite Copper in 2017-18 was 403 KT (kilo tonne). The global copper prices hover around USD 6,200-6300 per tone. This implies that closure of Tuticorin plant has cost a hefty loss of around USD 2.5 billion to the country,” IFC added.

In 2018, IFC had also conducted a study on impact of Reliance Jio’s entry into the domestic telecom market. The institute conducts and supports indigenous research, offers academic and executive courses, provides advisory services to the corporate and the government.

Do you know What is Positive GDP growth seen in Q3, need to fight inflation: RB, Cash Reserve Ratio (CRR), Finance Bill, Fiscal Policy in India, Expenditure Budget? 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
1Time to work not just for global economy but as a global family: Smriti Irani
2Suresh Prabhu urges commerce ministry to address issues of service exporters
3Union Budget 2021: Agriculture remains key for rural India, here’s what more can be done for farmers