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Notes Gs3 Indian economy

Indian Economy: Natural Resources

Resources are generally defined as all those things available in man’s physical environment on which he depends for the satisfaction of some want or the other.

W. A. Lewis states “the level and pattern of development of a country is often limited by its natural resources”

Long story short

Land resources

The National Forest Policy Resolution of the Government of India in 1952 recommended that considering the need for ecological balance, the country should have one-third of land as forest cover. But we are not able to reach the target even now.

The land that is not available for cultivation is of two categories. land put to non-agricultural uses and barren land. Over the years barren land was reduced and due to population pressure some uncultivable land was made cultivable. Land with trees and groves has been reduced and replaced by agriculture. Agriculture land increased over the years. V.S. Vyas asserts the current land utilisation is non-viable. As population pressure increases efficient land utilisation is a must as no more land can be turned for agriculture by clearing the forest.

The share of agricultural land is already huge and it cannot be sustainably increased anymore. So the productivity of agriculture must be increased to meet future demand. Demand for pasture land is also increasing so as to raise the production of animal husbandry, but forest clearance is not possible to increase the pasture land and agricultural land. So short-term and long-term plans, to increase productivity and reduce the share of barren land, must be taken in order to meet the future demand.

Social erosion and soil conservation

When soil erosion occurs, it can cause a loss of topsoil, which contains many of the nutrients necessary for plant growth. This can lead to decreased crop yields, reduced biodiversity, and diminished soil quality. When eroded soil is carried by water or wind, it can end up in streams and rivers, causing sedimentation that can harm aquatic ecosystems. Additionally, soil erosion can lead to increased water runoff, which can cause flooding and water pollution. Waterlogging and consequent salinity in irrigated areas have also caused considerable damage to agricultural lands. For instance, the increased cultivation of rice leads to increased irrigation of water and it causes an increase in the salinity of the groundwater which now had to be converted to shrimp farms.

To mitigate the impact of soil erosion on natural resources, it is crucial to take steps to prevent erosion from occurring. This can include implementing conservation tillage practices, planting cover crops, and using erosion control structures such as grassed waterways or terraces. By taking these steps, it is possible to reduce soil erosion and protect the natural resources that depend on healthy soil. Ravines are deep and narrow gorges or valleys that are formed by the erosion of soil by water, wind or other natural processes. The management of ravines is an important part of soil conservation efforts, as they can cause significant damage to natural resources and the ecosystem. Various measures, such as the construction of check dams, contour bunds and vegetative cover, are employed to prevent soil erosion and to reclaim the land affected by ravines.

The Central Soil Conservation Board (CSCB) is an apex advisory body on issues related to soil and water conservation in India. It was established in 1952 under the Ministry of Agriculture and Farmers Welfare. The main objective of the CSCB is to promote scientific methods of soil and water conservation across the country. It advises the government on various issues related to soil and water conservation, and also provides technical guidance and support to various state governments, non-governmental organizations, and other stakeholders involved in soil and water conservation activities. The CSCB also coordinates and monitors various soil and water conservation programs and projects implemented by the government and other agencies.

Water resources

Water resources include surface water, such as rivers, lakes, and reservoirs, as well as groundwater, which is found below the Earth’s surface. The FAO classifies a region or a country as water-stressed when the annual water availability per capita is less than 1,700 cubic meters, and as water-scarce when it falls below 1,000 cubic meters per capita. Anju Gaur and Priyane Amerasinghe argue that, at the macro level, India is in a water-stressed state.

Surface water: The entire surface water can be utilised because of topography, water flow characteristics, soil conditions and climate. In 1974 the surface water utilisation was about 25 million hectares meters and it is expected to increase to 70 million hectares meters in 2025.

Groundwater: It accounts for about 40% of the country’s total water supply and is used extensively in agriculture, industry, and domestic sectors. However, due to over-extraction and mismanagement, many regions in India are facing a groundwater crisis.

The Central Ground Water Board (CGWB) is responsible for monitoring, assessing, and managing the groundwater resources in the country. Various measures have been taken by the government, including regulation of groundwater extraction, rainwater harvesting, and recharge of aquifers to address the groundwater crisis.

National water policy

The National Water Policy is a policy document formulated by the Government of India to deal with the management and conservation of water resources in the country. The policy aims to ensure the optimal utilization of water resources in the country while maintaining its quality and protecting it from pollution. It also seeks to ensure the equitable distribution of water resources among different regions, sectors, and user groups. The policy was first formulated in 1987 and has since been updated several times, with the latest version being released in 2012. The policy provides the framework for the development and management of water resources in the country, and it is implemented by the central and state governments through various programs and schemes.

The key objectives of the NWP 2012 include:

  1. Ensuring water security for all: The policy aims to ensure adequate and equitable water supply for all human activities while ensuring the sustainability of water resources.
  2. Efficient water use: The policy promotes efficient water use through measures such as rainwater harvesting, water conservation, and reuse of wastewater.
  3. Integrated water resources management: The policy emphasizes the need for integrated water resources management to ensure sustainable and equitable use of water resources.
  4. Participatory approach: The policy emphasizes the importance of involving all stakeholders, including the public, in the management of water resources.
  5. Pricing and regulation: The policy advocates the need for appropriate pricing and regulation of water use to ensure optimal allocation and efficient use of water resources.
  6. Inter-state and international cooperation: The policy recognizes the need for cooperation and coordination among states and with neighbouring countries for the optimal management of water resources.

Forest resources

According to the India State of Forest Report 2019, the total forest and tree cover in India is 80.73 million hectares, which is 24.56% of the geographical area of the country. per capita forest area in India is only 0.08 ha as against the world average of 0.6 ha.

Forestry provides a range of benefits, including:

  1. Environmental benefits: Forests play a critical role in maintaining ecological balance by absorbing carbon dioxide, reducing soil erosion, preventing desertification, and regulating water cycles.
  2. Economic benefits: Forestry provides livelihood opportunities for people living in and around forested areas through timber production, non-timber forest produce (NTFP) collection, and ecotourism.
  3. Social benefits: Forests are a source of cultural and spiritual significance, providing people with a sense of identity and community.
  4. Biodiversity conservation: Forests are home to a large number of plant and animal species, and conserving forests is crucial for preserving biodiversity.
  5. Climate change mitigation: Forests absorb and store carbon, helping to mitigate the impacts of climate change.
  6. Disaster risk reduction: Forests provide natural protection against disasters like floods, landslides, and droughts.

Overall, forestry plays a critical role in sustainable development and is an important part of efforts to promote environmental, economic, and social sustainability.

The National Forest Policy of India was first introduced in 1952 and revised in 1988. The policy aims to ensure environmental stability and maintain ecological balance by preserving the forests and their natural resources. It outlines the government’s approach to forest conservation, management, and development, and provides guidelines for sustainable forest utilization. Some of the key objectives of the policy are to:

  1. Maintain environmental stability and ecological balance, including soil conservation and watershed management.
  2. Meet the basic needs of fuel, fodder, and small timber of the rural and tribal communities.
  3. Increase forest and tree cover to a minimum of one-third of the geographical area of the country.
  4. Encourage efficient utilization of forest produce and minimize waste.
  5. Promote the participation of people in managing forests and protecting their resources.
  6. Promote afforestation and reforestation programs on degraded and denuded lands.
  7. Establish national parks, wildlife reserves, and protected areas for the conservation of wildlife and its habitat.
  8. Encourage research and training in forestry and related fields.
  9. Promote the development of industries based on forest produce and forest-based eco-tourism.

The National Forest Policy of 1952 recognized the role of forests in meeting the needs of the people and promoting economic development. The policy provided a framework for the sustainable use and conservation of forest resources and recognized the importance of involving local communities in forest management. The policy has been revised to reflect changing priorities and circumstances, including the growing concerns over climate change and the need for sustainable development.

The Government of India has taken several measures for forest conservation and management, some of which are:

  1. National Afforestation Programme (NAP): The NAP was launched in 2000 to increase forest and tree cover in the country. It aims to support afforestation and reforestation activities and to enhance the ecological services of forests.
  2. Joint Forest Management (JFM): The JFM programme involves community participation in the conservation and management of forests. Under this programme, local communities are involved in the protection, regeneration and sustainable use of forests.
  3. Forest Conservation Act (1980): The Forest Conservation Act was enacted to regulate the diversion of forestland for non-forestry purposes. The Act requires the prior approval of the central government for the diversion of forestland for non-forestry purposes.
  4. Wildlife Protection Act (1972): The Wildlife Protection Act provides for the protection of wildlife, and the establishment of protected areas such as national parks, wildlife sanctuaries and conservation reserves.
  5. Green India Mission (GIM): The GIM was launched in 2010 as a part of the National Action Plan on Climate Change. It aims to increase forest cover, and improve the quality of forests and other ecosystems.
  6. Compensatory Afforestation Fund Act (2016): The Compensatory Afforestation Fund Act was enacted to provide for the utilisation of funds collected for compensatory afforestation and to strengthen the institutional mechanism for forest conservation and management.

Mineral Resources

Mineral resources in India are classified into three:

  1. First category: Minerals in which the known reserves are considerable. E.g: Iron ore, manganese, mica, thorium, etc
  2. Second category: Adequate known reserves are available, but cannot afford to export any. E.g: Bauxite, limestone, dolomite
  3. Third category: know reserves are inadequate. E.g: petroleum, gold, copper, zinc, coal

Geophysical exploration of new mineral deposits is not easy in the Indian subcontinent due to crystalline rocks, thick layers of alluvial soils, and large tracts of land buried under desert or ancient lava flow.

The Ministry of Mines is a department of the Indian government responsible for the exploration and development of the country’s mineral resources, formulating policies and programs for the development and utilization of mineral resources, and for the regulation and development of the mining industry and promoting the sustainable development of mineral resources, and to ensure that the benefits of mining are shared with the local communities.

The Geological Survey of India (GSI) is a government agency responsible for geological research, exploration, and assessment of mineral resources in India. It operates under the Ministry of Mines and is headquartered in Kolkata, West Bengal. The GSI was established in 1851 and is one of the oldest geological survey organizations in the world. Its main functions include conducting geological mapping and mineral resource assessments, providing geoscientific information and advisory services to various government agencies, and promoting scientific research and development in the field of geology and earth sciences. The GSI also collaborates with various national and international organizations to carry out joint research and exploration activities.

The Indian Bureau of Mines (IBM) is a subordinate office under the Ministry of Mines, which regulates the mining sector in India. It provides technical and consultancy services in the field of mining and also plays a key role in implementing the provisions of various laws related to mining activities, such as the Mines and Minerals (Development and Regulation) Act, of 1957. IBM also undertakes the exploration and mapping of mineral resources and provides data and information on mineral potential and mineral resource estimation. It also monitors the environmental impact of mining activities and ensures compliance with regulations related to sustainable mining practices.

The Mines and Mineral Development and Regulation (MMDR) Act, 1957 is legislation in India that regulates the mining sector. The act provides for the regulation of mines and the development of minerals under the control of the Union. It aims to increase the production of minerals, ensure their conservation, and prevent illegal mining. The act provides for the grant of mineral concessions and lays down the guidelines for their utilization and monitoring. The act has been amended several times to keep it in line with the changing economic, social and technological environment.

The Offshore Areas Mineral (Development and Regulation) Act 2002 is an Indian law that was enacted to regulate the exploration and mining of minerals in the territorial waters, continental shelf, exclusive economic zone, and other maritime zones of India. The law applies to all minerals, including oil and gas, and provides for the auction of mining rights to private companies through a competitive bidding process. The act seeks to promote sustainable development, protect the environment, and ensure the conservation of minerals.

The National Mineral Policy (NMP) was first announced in 1993 and revised in 2008. The policy aims to encourage the development of mineral resources in a sustainable and eco-friendly manner while ensuring the welfare of local communities. The 2008 policy recognizes the need for the conservation of minerals, while also promoting their sustainable development to meet the needs of industry and society. The policy seeks to attract private investment in exploration and mining activities, while also addressing issues such as environmental protection, mineral conservation, and equitable distribution of benefits to local communities. The policy also seeks to provide a stable and predictable regulatory environment for the mining industry in India.

The 2015 amendment to the MMDR Act brought about several changes, including the introduction of a transparent and competitive auction process for the allocation of mineral concessions, the establishment of a National Mineral Exploration Trust to encourage mineral exploration, and the inclusion of provisions for the rehabilitation and resettlement of affected communities. The amendment also increased the royalty rates for minerals and mandated the creation of district mineral foundations to ensure the welfare of local communities.