Open-pit iron ore mining site in Odisha with excavators and dump trucks highlighting eastern India’s mining growthOdisha 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.

By Vijay Kumar

Vijay Kumar is an experienced educator and content professional known for his clear explanations, structured teaching style, and strong command over competitive exam–oriented content. He has worked extensively in the online education ecosystem, contributing to learning platforms and digital education initiatives inspired by leading edtech brands such as Gradeup, BYJU’S, and Adda247. With a focus on current affairs, general studies, and exam-relevant concepts, specializes in simplifying complex topics into easy-to-understand lessons for aspirants preparing for banking, SSC, and other competitive examinations.

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