Unlocking Bauxite Resources Crucial for Odisha's Economic Growth, Experts Say
States must operationalise mineral resources for growth: Experts
Business Standard
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Experts emphasize the need for Odisha, India, to operationalize its bauxite resources to enhance industrial growth, reduce imports, and create jobs. With an estimated potential of adding ₹18,000 crore ($2.2 billion USD) annually to the state's economy, the focus is on developing a bauxite-led industrial corridor for sustainable development.
- 01Operationalizing bauxite resources can significantly boost Odisha's economy.
- 02India's bauxite imports cost around ₹4,000–5,000 crore ($480–600 million USD) annually.
- 03Three bauxite mining clusters could create nearly 15,000 direct jobs and over 50,000 indirect jobs.
- 04An integrated industrial strategy is essential for Odisha's competitiveness in future industries.
- 05Strong MSME participation is critical for the state's industrial transformation.
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Experts at the Think Change Forum highlighted the urgent need for Odisha, India, to operationalize its bauxite resources to foster industrial growth and reduce import dependency. Currently, India imports approximately 4.5 million tonnes of bauxite annually, incurring a foreign exchange burden of around ₹4,000–5,000 crore (roughly $480–600 million USD). By unlocking its bauxite reserves, Odisha could potentially add ₹18,000 crore (about $2.2 billion USD) to its Gross State Domestic Product (GSDP) and create nearly 15,000 direct and 50,000 indirect jobs. Experts noted that the state must connect mining with downstream manufacturing and establish a robust ecosystem to support innovation and technology in the aluminium sector. They emphasized that the focus should not only be on extraction but also on building research-led industrial capabilities that enhance local enterprise development and sustainability. A well-integrated industrial strategy is seen as essential for transforming Odisha into a hub for value-added manufacturing, especially in future industries such as electric mobility and renewable energy.
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The operationalization of bauxite resources could significantly enhance economic growth in Odisha, leading to job creation and industrial development.
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