BMI View: India's poor operating environment will continue to impede growth in the mining sector. A domestic shortfall in coal production is unlikely to fade a way anytime soon, while growth in iron ore output will be restricted by the government's clampdown on illegal mining.
While growing domestic demand for commodities will encourage state-owned miners to expand production, we believe India's poor operating environment will continue to restrict growth in the mining sector. A spate of bureaucratic and regulatory hurdles will remain major challenges for miners to grapple with over the coming quarters. For instance, the difficulties in securing environmental clearances and land acquisition have led to a series of mining projects being delayed over the past year. Vedanta Resources' bauxite mining project in Odisha was forced to put on hold due to fierce protests by the local community. A bright spot, however, is that the Bharatiya Janata Party (BJP) will implement positive reforms to revive economic growth over the medium term. The party's track record of pro-business dealings could bring about an improving operating climate in the mining sector.
We expect India to face a growing shortfall in coal production over our forecast period to 2018. Although the government will be keen to expand coal output to tackle chronic power shortages, this will be a challenging process. India's coal sector is rife with theft and corruption and hampered by primitive mining techniques. Additionally, significant amounts of coal deposits are located in protected forests or conflict-laden tribal lands, making it extremely difficult to increase production.
| Mixed Outlook |
|India - Select Minerals Production (% chg y-o-y)|
In terms of iron ore, the government's crackdown on illegal mining activities will prevent a significant recovery in output over the coming quarters. We expect more domestic firms to venture abroad for mining investment over the coming tears. The huge reserves...
The India Mining Report has been researched at source and features Business Monitor International (BMI)'s mining and commodity forecasts for metals, minerals and gems, covering all major indicators including reserves, production, exports and values. The report also analyses trends and prospects, national and multinational companies and changes in the regulatory environment.
BMI's India Mining Report provides industry strategists, service companies, company analysts and consultants, government departments, trade associations and regulatory bodies with BMI's independent forecasts and competitive intelligence on the mining industry in India.
- Use BMI's independent industry forecasts on India to test other views - a key input for successful budgeting and planning in this mining market.
- Target business opportunities and risks in India's mining sector through our reviews of latest mining industry trends, regulatory changes and major deals, projects and investments in India.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. KPIs and latest activity), Key Projects Tables and Competitive Landscape Tables.
BMI Industry View
Summary of BMI’s key forecasts and industry analysis, covering mining reserves, supply, demand and prices, plus analysis of landmark company developments and key changes in the regulatory environment.
Industry SWOT analysis
Analysis of the major Strengths, Weaknesses, Opportunities and Threats within the mining sector and within the broader political, economic and business environment.
BMI Industry Forecasts
Historic data series (2009-2013) and forecasts to end-2019 for key industry and economic indicators, supported by explicit assumptions, plus analysis of key risks to the main forecasts. Indicators include:
- Mining industry: Industry size (USDmn), real growth (%), % of GDP, employment (‘000), workforce as % of total workforce, average wage (USD).
- Output: Production volumes (‘000 tonnes, carats etc.) for all major metals, minerals, ores and gems mined in each state, including bauxite, copper, gold, coal, lead, silver, tin, titanium, uranium, zinc etc.
- Exports: Value of exports (USDmn) for all major metals, minerals, ores and gems mined in each state.
- Commodity markets: Global demand, supply, stocks and benchmark prices (USD) for aluminium, copper, lead, nickel, tin, zinc, gold and steel.
BMI’s Mining Risk Reward Index
BMI’s Risk Reward Indices provide investors (mining companies and support service providers) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points to provide indices of highest to lowest appeal to investors, with each position explained.
Competitive Landscape Tables & Analysis
Comparative company analyses and tables detailing USD sales, % share of total sales, number of employees, year established, market cap/NAV, ownership structure, production and % market share.
Details and analysis of all current and planned developments (new ventures, capacity expansion and other investments) across the sector broken down by metal/ore.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
The Mining reports are based on an extensive network of primary sources, such as multilateral organisations (UN, WB, IMF), national chambers of commerce and industry, national statistical offices, government ministries and central banks, and multinational companies.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.