The federal government have modified the fiscal incentives and regulatory framework to attract foreign investment in the minerals sector. This has been done keeping in view the recent Geological Survey in various parts of the country which has confirmed great potential of the country in metallic minerals, like copper, gold, silver, platinum, chromium, iron, lead and zinc. As regards industrial minerals, there is a vast potential of multicoloured granite, marble and other dimensional stones of high quality for export purposes.
Its share in GDP has hovered around 1.4 percent in the past few years which is not truly representative of the actual potential of the sector. At present, about 50 minerals are under exploration with the measure one being cold, raw salt, and other industrial and construction minerals.
The incentives to be provided to foreign investors have been earmarked because the government has accorded priority in the implementation of national minerals policy.
Foreign direct investment in the mining sector was 17 percent in 1999-2000 which exhibited rising trend. Thereafter, its share in the total FDI inflow peaked at over 54 percent in 2001-02 against 26 percent in 2000-01. During July-April last though its share has declined, yet it is still one of the major recipients of FDI accounting for 22.3 percent in overall FDI.
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