The Indian mining sector has experienced significantly low growth rates in past couple of years (-0.6% in 2011-12 and 0.4% in 2012-13) which has also contributed to poor growth of downstream manufacturing and power sector. Despite 100% FDI being allowed in Indian mining sector, the actual inflow of foreign investment has been quite low. Gross Capital Formation (GCF) rate in mining sector has remained stagnant at 3.8%. Investment in exploration to enhance our mineral resource base is very low (at about 0.5% of global spent). While addressing some of these challenges such as policy matter, ownership and allocation issues would need structural policy overhaul, some budgetary measures can help investor restore confidence in investing in mineral sector and attract new investment.

(Business World)