India Ranked 2nd Largest Aluminium Producer in the World

India has solidified its position as a global leader in mineral production, with impressive rankings across several key minerals. The country stands as the 2nd largest Aluminium producer, the 3rd largest lime producer, and the 4th largest iron ore producer in the world. These rankings underscore India’s significant contribution to the global mineral industry and highlight its growing importance in the sector.

Record-Breaking Production in FY 2023-24

The fiscal year 2023-24 witnessed unprecedented levels of mineral production in India, setting a strong foundation for continued growth. Two key minerals, iron ore and limestone, emerged as the backbone of India’s mineral sector, collectively accounting for an impressive 80% of the total MCDR mineral production by value. The production figures for these crucial minerals in FY 2023-24 were as follows:

• Iron Ore: 275 million metric tons (MMT)
• Limestone: 450 million metric tons (MMT)

These figures not only represent a significant achievement for India’s mineral sector but also indicate the robust demand from various industries that rely on these raw materials.

Q1 FY 2024-25: Continuing the Momentum

Iron Ore Production Soars

Building on the success of the previous fiscal year, iron ore production has shown remarkable growth in the first quarter of FY 2024-25. The production increased from 72 MMT in Q1 FY 2023-24 to 79 MMT in Q1 FY 2024-25, registering an impressive 9.7% growth. This surge in production reflects the strong demand from the steel industry and other related sectors.

Limestone Maintains Steady Growth

Limestone production also continued its upward trajectory, albeit at a more moderate pace. Production rose from 114 MMT in Q1 FY 2023-24 to 116 MMT in Q1 FY 2024-25, achieving a 1.8% growth. This steady increase indicates sustained demand from the cement industry and other limestone-dependent sectors.

Manganese Ore Sees Significant Jump

In a notable development, manganese ore production witnessed a substantial increase. Production jumped by 11%, reaching 1.0 MMT in Q1 FY 2024-25, up from 0.9 MMT in the corresponding period of the previous year. This growth highlights the increasing importance of manganese in various industrial applications.

Non-Ferrous Metal Sector: Aluminium Leads the Way

The non-ferrous metal sector, particularly aluminium, has shown positive growth trends. According to provisional data:

• Primary aluminium production in Q1 FY 2024-25 (April-June) increased to 10.43 lakh tons (LT)
• This represents a 1.2% growth compared to 10.28 LT in Q1 FY 2023-24 (April-June)

As the 2nd largest aluminium producer globally, India’s continued growth in this sector reinforces its position in the international market and indicates strong domestic demand for the metal.

Economic Implications and Industry Outlook

The sustained growth in mineral production, especially in iron ore and limestone, reflects robust demand conditions in key user industries, particularly the steel and cement sectors. This growth, coupled with the positive trends in aluminium production, points towards continued strong economic activity in various sectors, including:

• Energy
• Infrastructure
• Construction
• Automotive
• Machinery

These growth trends suggest a healthy outlook for India’s industrial and economic growth in the coming quarters. The mineral sector’s performance serves as a barometer for the overall health of the economy, indicating sustained industrial activity and infrastructure development.