I quote from here. This is consistent with my many writings on this subject. It is GROSSLY inconsistent with bootlicker Gina Rinehart’s assessment of Modi (see my FB post).
Recent reports on India’s courting of private investment to raise $15 billion over five years “to double mining output and cut mineral imports” as it strives to boost domestic manufacturing under Modi’s landmark ‘Make in India’ drive, have been accompanied by India mines minister Piyush Goyal’s push to increase mineral exploration spending. The government wanted to boost exploration spend, “partly through taking upfront payments for discovered deposits when the mines are auctioned”, Bloomberg reported.
Global consulting group McKinsey has observed that without “accelerated growth in mining” India will rely heavily on imported raw materials to supplement local supply into its manufacturing sector, with increased forex spending on thermal coal, coking coal and iron ore alone reaching an estimated $58 billion, “a staggering 180% of today’s current account deficit”. Domestically, McKinsey says, “the Indian mining sector has been a success story in waiting for decades”.
“The mining industry could contribute an additional US$125 billion to India’s output and $47 billion to India’s GDP by 2025,” it says.
Bhandari is typically blunt in his assessment of recent public statements from Indian government leaders.
“In a very Orwellian sense this is good news for the international commodity prices. India … is incapable of ramping up its mining output. In fact, over the last 15 years when the world was rapidly ramping up its commodity production and increasing its exports to China, India was turning it down.
“There are simply no institutional capacities in India that make the ramping up of production of commodities possible. It is for this reason that despite having among the largest coal reserves, India imports from Indonesia and Australia, and these imports are growing.
“There is always hope for India. And they always stay hopes. Indians loves talking but avoids walking.
“Doing business in India is impossible enough, mining is much more difficult.
“The [mines] minister and Bloomberg should have at least used their calculators before writing and talking about [the investment required to double domestic mining output]. The US$3 billion per year [over five years] is about 0.0017% of the Indian GDP. US$3 billion is equivalent to just over US$2 per Indian, small change even for a poor country like India.
“If this amount could really double Indian mining output, it could be found from many places internally. A mid-sized mining company could single-handedly supply such an investment.”
And on the hoped-for recovery of advance payments for mineral exploration tenements, Bhandari was quizzical: “Corruption, planning and confused thinking is part and parcel of public servants in India. Would you give advance payment to India for minerals?
“I can think of no sane company that will do so.”