BHUBANESWAR: Odisha has emerged as the largest contributor to India’s mining economy, accounting for around 14 per cent of the country’s mining gross value added (GVA) in FY2025, according to a report released during the India Mines and Minerals Conclave 2026 in Bhubaneswar.
The report, jointly prepared by Assocham and credit rating agency ICRA Ltd, with data sourced from the Ministry of Statistics and Programme Implementation (MoSPI), ranked Gujarat second with a share of 12.9 per cent, followed by Maharashtra with 12.1 per cent, Rajasthan with 9.6 per cent and Madhya Pradesh with 8.6 per cent. These five states together contributed over 57 per cent of the national mining GVA, reflecting a high concentration of mineral-driven economic activity.
Pointing out that the size of a state’s mining sector does not necessarily correspond to its contribution to the overall state economy, the report indicated that industrially diversified states such as Maharashtra and Gujarat, despite having large mining sectors in absolute terms, recorded relatively modest contributions to their gross state domestic product (GSDP) at 3.4 per cent and 2.8 per cent, respectively.
In contrast, eastern and north-eastern states demonstrated deeper economic integration with mining. In FY2025, mining contributed 12.9 per cent to Odisha’s GSDP and 11 per cent to Chhattisgarh’s, while other states such as Assam (8.6 per cent), Tripura (8.3 per cent) and Jharkhand (7.7 per cent) also showed significant dependence on the sector.
Suggesting a sharper contrast in the growth performance of the mining sector over the past decade, the knowledge report said that while India’s overall mining sector experienced modest growth between FY2015 and FY2025, Madhya Pradesh recorded the highest compound annual growth rate (CAGR) at 12.5 per cent, followed by Gujarat at 11.9 per cent, Telangana at 11.4 per cent and Odisha at 10.8 per cent.
“These states benefited from consistent policy measures, improved ease of doing business, faster project clearances and increased private sector participation. In comparison, Jharkhand, despite being mineral-rich, recorded a relatively low CAGR of 4.5 per cent, indicating structural bottlenecks and slower reform implementation,” the report stated.
The pace of mineral block auctions emerged as a key indicator of resource monetisation and the effectiveness of post-Mines and Minerals (Development and Regulation) Act reforms. Madhya Pradesh and Odisha led the country in the pace of mineral block auctions, by successfully auctioning 156 and 97 blocks, respectively, followed by Chhattisgarh with 95, Karnataka with 63 and Maharashtra with 62.
The composition of auctioned minerals varied across states, with Odisha focusing largely on iron ore and manganese; Rajasthan and Andhra Pradesh concentrating on limestone, marble and other industrial minerals; and Maharashtra and Chhattisgarh maintaining diversified portfolios including coal, iron ore and bauxite.
Regionally, eastern India emerged as the country’s primary mining hub, with Odisha, Jharkhand, Chhattisgarh and West Bengal forming the core of this mineral-rich belt, while north-eastern states such as Assam and Arunachal Pradesh are gradually gaining prominence despite still having limited output.
Data indicated that Odisha alone accounted for over 38 per cent of India’s mineral production value in FY2026, excluding hydrocarbons and atomic minerals. Rajasthan contributed 23 per cent, Chhattisgarh 14 per cent and Jharkhand around 4 per cent, showing the dominance of a few states in national mineral output.
In iron ore, Odisha, Jharkhand and Chhattisgarh collectively account for the bulk of India’s production, with Odisha alone producing around 155 million tonnes in FY2025, representing over 53 per cent of the national output. Jharkhand’s Singhbhum region and Chhattisgarh’s Bailadila belt continue to be major contributors, the report stated.
In coal production, eastern India again leads, with Odisha producing 237 million tonnes in FY2024, accounting for nearly 24 per cent of India’s total output of 997 million tonnes. Jharkhand and Chhattisgarh follow closely with substantial coalfield reserves, while Assam has begun contributing modestly from reserves in Ledo and Margherita, though output in the North East remains constrained by environmental concerns and infrastructure challenges.
In bauxite also, Odisha maintained a commanding lead, producing 17.5 million tonnes in FY2024, which accounts for nearly 73 per cent of India’s total production, making it central to the country’s aluminium industry. Chromite production is almost entirely concentrated in Odisha, which holds 96 per cent of the country’s reserves and contributes 100 per cent of production, primarily from Jajpur district’s Sukinda Valley, making it the sole critical source of this strategic mineral in India, the report added.
Source: Business Standard
