Impact of COVID-19 on the extractive sector of India

Abstract

Mining is an important enterprise that will supply essential minerals for the country’s infrastructural development. Mining is a key industry and a development engine in the Indian economy. The epidemic has had both immediate and long-term effects on the labour and industries in India. Short-term effects include the cessation of mineral production, salary loss due to absenteeism and pandemic limitations, unemployment, and the selling of minerals on the market. The reputation and economic health of industries, fresh mineral deposit exploration, and new mining complex development have all been impacted in long-term. Aside from the mining industry-specific impact of COVID-19, the social fabric of the mining workers has been impacted since they are living in an environment of fear and uncertainty. This paper attempts to analyse the effect of COVID-19 on extractive industries in India. It also focuses the steps which taken by the Indian government. The paper concluded with the negative effect of COVID-19 which disrupts the mining sector and the contribution declined during COVID-19. However, for instance from mineral rich-Odisha, the mining sector takes up by its growth in post COVID-19 period with remarkable increment from negative growth to high positive rate.