Mining and Quarrying
The industrial sector that showed a clear decline in average annual growth during the period of 1991–92 to 1998–99 was Mining and Quarrying.
While the Indian economy underwent significant liberalization during this decade, the performance across the three broad sectors of the Index of Industrial Production (IIP) was uneven.
Analysis of Sectoral Performance
| Sector | Growth Trend (1991–99) |
|---|---|
| Mining and Quarrying | Showed a consistent decline in growth rates. After an initial post-reform bump, the growth rate fell significantly, reaching a low of approximately -0.8% to 0.7% toward the end of the period (1998–99). |
| Manufacturing | Experienced a "mini-boom" in the mid-90s (peaking around 1995–96) before entering a cyclical slowdown. However, its average growth remained higher than Mining. |
| Electricity | Maintained a relatively steady, albeit moderate, growth rate compared to the volatility seen in the other two sectors. |
Why Mining Declined
The decline in the Mining and Quarrying sector was attributed to several structural and regulatory factors:
Lack of Private Investment: Unlike the manufacturing sector, mining remained heavily regulated and dominated by the public sector for a longer duration.
Environmental and Regulatory Hurdles: Increasing scrutiny over land acquisition and environmental clearances began to slow down new projects.
Infrastructure Bottlenecks: Poor linkages (like railway transport for coal) hampered the ability to move extracted minerals efficiently.
Important Questions from Industrial Sector
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Prior to the country’s independence, India was particularly known for its ____________ industries.
Which of the following is in the list of Maharatna Central Public Sector Enterprises?
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