India’s First Mineral Exchange to Begin Operations by FY28: Official

India Set to Launch Its First Mineral Exchange by FY28

The establishment of a mineral exchange is expected to revolutionize the trading landscape for minerals in India.

A New Era for Mineral Trading

India’s mining sector is on the brink of a significant transformation with the impending launch of the country’s first mineral exchange. This initiative, as outlined by Mines Additional Secretary Veena Kumari Dermal, is expected to be registered and operational by FY28, following the recent notification of the Mineral Exchange Rules, 2026. The exchange aims to create a transparent, electronic trading platform that facilitates market-based price discovery and reduces information asymmetry between producers and buyers.

The exchange will not only streamline transactions but will also incorporate risk-management mechanisms to prevent market manipulation, ensuring a reliable marketplace for all participants. Dermal emphasized that this platform is crucial for supporting India’s infrastructure, manufacturing, and energy security, which are pivotal to the nation’s development goals.

Addressing the Import Burden

The establishment of the mineral exchange is particularly timely, given India’s substantial mineral imports, which amounted to ₹10,12,000 crore in FY26. By fostering a self-reliant economy, the exchange aims to reduce the financial burden on the national exchequer and encourage domestic production. The government’s vision of Viksit Bharat 2047 underscores the urgency of enhancing local mineral production capabilities to meet the growing demand.

Over the past decade, the mining sector has experienced remarkable growth, with mineral production increasing from ₹49,900-50,000 crore in 2013-14 to an estimated ₹1.86 trillion in FY26. This growth trajectory, driven by policy reforms from the Ministry of Mines, highlights the sector’s potential to contribute significantly to the economy.

Growth in Mineral Production

The production figures further illustrate this trend: iron ore output surged from 152 million tonnes in 2013-14 to 312 million tonnes last year, while limestone production rose from 280 million tonnes to 483 million tonnes. Bauxite production also saw an increase, albeit more modest, from 22 million tonnes to 26 million tonnes. Despite these gains, Dermal cautioned that current production levels still fall short of meeting the country’s aspirations.

Key Highlights

• India’s first mineral exchange is expected to be operational by FY28.
• The exchange aims to enhance transparency and efficiency in mineral trading.
• Risk-management mechanisms will be integrated to prevent market manipulation.
• India’s mineral imports reached ₹10,12,000 crore in FY26.
• Mineral production has grown significantly, with a CAGR of 11.6% over the last decade.

Investor Note: The establishment of a mineral exchange could present new investment opportunities in the mining sector, particularly as domestic production capabilities are enhanced to meet national demand.