Mining industry has suffered a setback as demand for minerals has been dampened by a slump in mining activity.
The mining industry is likely to lose around 4,000 jobs over the next two years.
Mining industry in the country has been on a downward spiral since the early 2000s, when the mining sector experienced the biggest job losses in the history of the industry.
According to the mining industry association, mining is one of the fastest-growing industries in the nation, with an estimated turnover of $30 billion.
It is the biggest employer of more than 1.2 crore workers.
The association, which is led by mining companies, said in a statement that mining industry has been facing a setback due to the slump in production and mining activity due to cyclical factors.
According a report by mining analyst Sanket Jain, the mining boom has been hit by the sharp downturn in mining sector activity.
He said, “Due to cyclic factors, the industry is unlikely to gain any more employment.
Mining activity is expected to decline by around 3,500 jobs over two years.”
In August this year, the USGS revised down the growth in the US mining sector to 3.8 per cent.
The mining sector, which has a gross value of over $2.6 trillion, has a workforce of over 1.1 crore people.
According the National Institute of All India Meteorology and Climatology (NIAMS), the mining activity in the Indian mining sector is set to decline in 2020 to 0.6 per cent of GDP.
NIAMS also said, that this is a reflection of the slowdown in growth and the impact of cyclical conditions.
However, there are some who have hailed the revival of mining industry in India.
The association of mining companies said that the sector will be able to rebound in 2020 by around 8,000 new jobs.
The industry has experienced a decline of 5,500 mining jobs in the past two years, which the association said is the highest in the world.
The union of mining employers also welcomed the revival, saying that the industry will grow by 10 per cent to 7,800 jobs in 2020.