Underline the implications of deregulation in the mining sector for India’s economic growth and environmental sustainability.

The state of mining regulation is crucial for balancing economic growth with environmental sustainability. The question arises – Is deregulation the way forward?

• Current Regulatory Landscape: The mining sector in India is heavily regulated, which often leads to delays in project approvals and implementation. As the sector contributes only about 2% to India’s GDP, there is potential for growth. The government has recognised this and is exploring ways to enhance productivity through deregulation.
• Economic Growth Potential: India’s ambition to increase its manufacturing sector’s GDP contribution from 16% to 25% relies heavily on the availability of minerals. With a growing demand for essential resources like copper, aluminium, and new-age minerals such as lithium and cobalt, deregulation could facilitate quicker access to these resources. This aligns with the global trend of diversifying supply chains, particularly in a post-COVID world.
• Environmental Considerations: While deregulation may expedite mining operations, it raises concerns about environmental degradation. The mining sector is often associated with deforestation, water pollution, and loss of biodiversity. Therefore, any approach towards deregulation must include stringent environmental safeguards to ensure sustainable practices.

While deregulation in the mining sector presents opportunities for economic growth, it must be carefully balanced with environmental considerations. The government should adopt a dual approach – streamline regulations to enhance efficiency while ensuring robust environmental protection measures are in place. This would not only secure India’s resource needs but also encourage sustainable development in the long run. In this way, a nuanced strategy that embraces both economic and environmental priorities will be essential for the future of India’s mining sector.