India is embarking on an ambitious journey to unlock the vast potential of its dormant mineral resources, a move that could reshape its economic landscape and enhance its self-reliance in critical sectors. With less than 2% of its reserves mined so far and a relatively small proportion of the global mineral exploration budget allocated to the country, India is determined to transform its mining sector into a key driver of economic growth and resource security. This initiative involves a multi-pronged approach, encompassing policy reforms, technological advancements, and a strategic focus on critical minerals essential for the nation's energy transition and technological advancement.

One of the most significant steps in this direction is the amendment of the Mines and Minerals (Development and Regulation) Act (MMDR Act) in 2023, granting the government exclusive authority to auction critical minerals. This structured and transparent mechanism for resource allocation aims to position India as a proactive player in the global minerals market, addressing supply chain vulnerabilities and reducing reliance on foreign suppliers.

Further amendments to the MMDR Act in 2015, 2020 and 2021 have been crucial in eliminating corruption and inefficiencies by replacing discretionary mining lease allocations with a transparent, auction-based system. These reforms have not only increased government revenues but also improved private sector participation. The amendments have also eased business operations, enabled seamless transfer of mining leases, and reduced regulatory burdens. Moreover, the 2021 amendment removed end-use restrictions for coal mining, extended mining leases to 50 years, and introduced a Composite Exploration-cum-Mining License (CEMP) to attract private investment.

To further boost exploration and private participation, the government has established the National Mineral Exploration Trust (NMET) to fund exploration projects. The Exploration License (EL) regime encourages the participation of Micro, Small and Medium Enterprises (MSMEs) and startups in exploration activities. In line with this, states like Karnataka, Rajasthan, Maharashtra, Madhya Pradesh, Andhra Pradesh, and Chhattisgarh have issued notices inviting tenders for the auction of Exploration Licenses (EL) in critical mineral reserves.

India has also launched the National Critical Minerals Mission (NCMM) to secure the supply of minerals like lithium, cobalt, and nickel, which are vital for the energy and technology sectors. The mission focuses on increasing domestic production, acquiring critical mineral assets abroad, and recycling critical minerals. The government will also undertake 1,200 exploration projects and auction over 100 critical mineral blocks by 2031.

Technological advancements are also playing a crucial role in transforming India's mining sector. Satellite imagery is being used to monitor illegal mining and ensure compliance, while the Khanan Prahari App enables citizens to report such activities. The National Geoscience Data Repository (NGDR) offers public access to over 12,000 geological reports, and drone surveys, Mining Tenement System (MTS), and faceless filings are improving efficiency and transparency. An AI-enabled Data Processing Centre in Bengaluru and a Mineral Exploration Hackathon are also part of these technology-driven reforms.

In the Union Budget 2025-26, the government introduced several measures to strengthen the mining industry's competitiveness and sustainability. These include incentives for coal gasification, the establishment of a State Mining Index to rank states based on their mining sector performance, policies for mineral recovery from mining tailings, and progressive tax structures promoting the extraction and processing of critical minerals.

Despite these efforts, India's mining sector faces several challenges, including regulatory delays, illegal mining, low exploration, logistical bottlenecks, and import dependence for strategic minerals. To address these challenges, the government is focusing on boosting exploration and private participation, modernizing infrastructure, promoting technology and data-driven mining, curbing illegal mining and corruption, and securing critical minerals through global partnerships.

India's bold move to unlock its dormant mineral wealth signifies a strategic shift towards self-reliance and economic growth. By implementing comprehensive policy reforms, promoting technological advancements, and focusing on securing critical minerals, India is poised to transform its mining sector into a major contributor to its economic prosperity and sustainable development.