Narendra Modi’s Government To Focus On Mining, Mineral Resources: Barclays

According to a report issued by global banking and financial services company Barclays, the top priorities of Prime Minister Narendra Modi’s government is clarity on mining regulations and auction of mineral resources.

"It is time that India put its mining sector house in order. The sector's GDP contribution has dropped from 4% in 1994 to 2% in FY'14 and the sector's current account deficit has increased to USD 26 billion. Two landmark judgments by the Supreme Court are expected soon," Chirag Shah, Barclays Capital's director, equity research, said.

Clarity on mining regulations could significantly improve investment confidence in the sector, the report said.

As per Barclay’s India Materials report, "We revise our steel demand estimate to 7.4% in FY'16 as against 6% earlier. Regulatory clarity on allocation or auction of key raw materials would bode well for steel and aluminium players."

The report also added that India is at a unique juncture as the Supreme Court is expected to pronounce its judgment in the coal block allocation case. The first coal blocks have been put up for auction with bidding likely to begin this month. (Image: The Times of India)