Odisha leads India’s mining economy as eastern states drive industrial growth
  • Odisha has emerged as the top contributor to India’s mining economy, reinforcing the eastern region’s dominance in the sector, according to a latest industry report released at the India Mines and Minerals Conclave 2026.
  • According to a recent report by Assocham and ICRA, Odisha accounted for around 14% of India’s mining Gross Value Added (GVA) in FY2025, making it the leading state in the country’s mineral economy.

Eastern India Driving Mining Growth:

  • The eastern and north-eastern states are playing a crucial role in India’s mining expansion. States such as Odisha, Jharkhand, and Chhattisgarh dominate mineral production, particularly in iron ore.
  • Odisha alone produced around 155 million tonnes of iron ore in FY2025.
  • Mining contributes 12.9% to Odisha’s GSDP, while Chhattisgarh and Jharkhand also show high dependence on mining activities.
  • This underscores how the eastern mineral belt has emerged as the backbone of India’s resource-driven growth.

Top Mining States in India:

According to the report:

  • Odisha – 14% share (Top position)
  • Gujarat – 12.9%
  • Maharashtra – 12.1%
  • Rajasthan – 9.6%
  • Madhya Pradesh – 8.6%

Together, these states contribute over 57% of India’s mining GVA.

Growth Trends & Insights:

  • India’s mining sector saw moderate growth over the last decade States like Madhya Pradesh and Gujarat recorded faster growth rates Odisha maintained strong performance with steady expansion
  • This indicates a shift towards resource-rich regions becoming growth hubs.

Key Insights from the Report:

  • Mining activity in India is highly concentrated in a few resource-rich states
  • Odisha remains the largest driver of mineral production and value
  • Strong mineral reserves are boosting industrial growth in eastern India

Latest Challenges & Reforms

Despite strong growth, several challenges persist:

  • Odisha reported a loss of ₹4,162 crore due to iron ore undervaluation.
  • The government is introducing AI-based monitoring systems to enhance transparency and accountability.
  • Industry leaders have called for faster reforms and quicker operationalisation of mining blocks.

Conclusion:

  • Odisha’s rise as India’s mining leader highlights the growing importance of the eastern region in driving economic growth. With policy reforms and technological upgrades, India’s mining sector is poised for a stronger and more sustainable future.

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