Despite India being one of the countries of the Gondwanaland, its mining industry contributes much less to its Gross Domestic Product(GDP) in percentage. Discuss. (Answer in 150 words) [2021]

India’s mining industry, part of ancient Gondwanaland with rich mineral reserves, contributes only 2.2% to 2.5% to GDP. Reasons for low contribution include:

Small-scale mining: Providing jobs to 700,000 individuals, small-scale mining contributes 6% to mineral production cost.
Illegal mining and scams: Numerous scams cause revenue loss and environmental impact.
Freight equalisation policy: In effect from 1952 to 1993, this policy hurt mineral-rich states’ economic prospects.
Environmental concerns: Mining activities cause environmental degradation and land rights conflicts.
Inefficient bureaucracy: Obtaining licenses and permits is hindered by government inefficiency.
Lack of infrastructure: Inadequate roads, power, and water supply hinder operations, especially for small companies.
Insufficient financing: Financial constraints limit small mining companies’ industry development.
Child labor and poor working conditions: The sector is associated with child labor and hazardous conditions, leading to scrutiny and negative perceptions.
Corruption and mismanagement: Scandals like coal allocation scam and illegal mining tarnish the industry’s image and cause revenue losses.
Inadequate regulation: Absence of proper regulation leads to illegal mining and environmental degradation.
Ban on specific mining techniques: NGT’s 2014 ban on ‘rat-hole’ mining in Meghalaya affected coal production.