India's Mining Output Struggles Despite Rare-Earth Gains in H1 FY27

Mining and quarrying activity across India remained subdued during the first six months of FY27, according to latest output data, with declines in fuel minerals and non-metallic mineral extraction weighing on sector performance. The weakness underscores ongoing difficulties in key mining categories that traditionally anchor industrial activity and export revenues.

Rare-earth element mining provided some bright spots for the sector, posting gains during the period. However, these increases proved insufficient to reverse the broader downward trajectory affecting India's extractive industries. Fuel mineral output, which includes coal and petroleum-related mining, contracted during H1 FY27, reflecting both demand constraints and operational challenges.

Non-metallic minerals, which encompass limestone, gypsum, and other industrial minerals essential for construction and manufacturing, also experienced declines in the review period. This category's weakness has particular implications for India's infrastructure and real estate sectors, which rely heavily on steady mineral supply.

The mixed performance highlights structural challenges facing India's mining sector, even as policymakers push to boost domestic mineral production and reduce import dependence. Industry observers are monitoring whether output trends will improve in the latter half of the fiscal year as economic activity potentially accelerates.