India "s International Mining and Machinery Expo 2006 held two weeks ago in Kolkata was one of the biggest machinery, equipment and service displays to be held in India and the response from countries worldwide attending this event matched the importance this event holds on the mining calendar and the country"s mobilization of its mining industry.

Furthermore, it is evidence that the international community sees India 's mining industry as a major growth industry in the next decade, requiring significant input from advanced mining nations to supply the capital and equipment infrastructure to develop and develop the country's resources and modernize the mine output production.

Some 156 exhibitors had their products and services on show, and included companies from India , Australia , Germany , Poland , the United Kingdom , South Africa and others.

Australia was partner country at IMME and the Australian pavilion was coordinated by Austrade. Australia had the strongest team of exhibitors with more than 33 Australian companies exhibiting, seven companies were virtual exhibitors having their products on display in the Austrade pavilion and around 30 other Australians visited the exhibition to develop contacts in India and scope out the local market.

In a presentation by Confederation of Indian Industry chairman Ravi Kastia at the IMME conference Mr Kastia said the Indian mining industry was undergoing sea changes in its policy structure and technological aspects that are conducive for the overall growth of this sector.

"With economic liberalization and new mineral policy, the mining and mineral industry has become the country's emerging business. India is now poised for a momentous growth in the mineral and metal industries," Mr Kastia said.

To facilitate the growth in the mineral industry, the National Mineral Policy was liberalized in 1993. Foreign direct investment up to 100% is being allowed in exploration and mining of all minerals, including gold and silver.

Mr Kastia admitted that despite the facilitation of easier investment into India , the investment flow had not been realized.

"Though there has been considerable encouragement in foreign investments, there also has been considerable impediments due to procedural delays.

"A committee was set up under the chairmanship of Mr Anwarul Hoda, of the Industry, Planning Commission to address issues on investment. The committee has been working to smooth bureaucratic crinkles which has led to more incentives to attract exploration investments.

The Hoda Committee has collected submissions from all stakeholders and after submitting its report, "I am sure that with the implementation of the changes suggested by this committee, the investment flow into the mineral industry will gain momentum.

" India realizes the importance of foreign direct investment in building its economy. FDI is a major input in the industrial growth in general and the mineral industry's growth in particular," Mr Kastia said.

India is now one of the fastest growing economies in the world and is the second fastest growing economy in Asia . It has attained a GDP of 8.1% in 2005-06 and is poised for a higher growth this year.

The government of India is aiming to sustain a GDP growth of 9 to 10% in the next five years and it will be the mining industry that will be playing a significant role to reach this target.

India is rich in coal, iron ore (fifth largest base in the world), bauxite (fourth largest base), manganese (second largest) and limestone. India also has good resources in chrome (third largest), dolomite, gypsum, barites and kaolin. The main mineral-bearing states in India are: Orissa, Jharkhand, Chattisgarh, Karnataka, Goa and Madhya Pradesh.

India has about 246 billion tonnes of coal, 23.6 billion tones of iron ore, 3 billion tonnes of bauxite and 170 billion tonnes of limestone.

India however is deficient in base metals - copper and zinc and also gold and diamonds. India is also lacking coking coal.

During 2005-06, India produced 403 billion tonnes of coal, 155 million tonnes of iron ore, 170 million tonnes of limestone, 12 million tonnes of bauxite and about 4 million tonnes of chromite.

While India is a major exporter of polished diamonds, iron ore (third major exporter in the world after Brazil and Australia ), chrome ore, bauxite and alumina and granite, it imports uncut diamonds, coking coal, gold and copper concentrates.

"High growth in infrastructure and the manufacturing sectors has led to China 's unprecedented growth in the demand of steel and other metals," Mr Kastia said.

These two sectors promise to become the solid foundation for the metals and hence and hence the mining industry in our country.

"It is estimated that coal consumption will touch the billion tonne mark and with steel demand expected to cross 100 million tonnes, domestic iron ore consumption will be about 175 million tonnes by 2019-20. Also copper, aluminium and zinc are expected to cross the one million tonne consumption level."