5 Reasons Why Russian Entrepreneurs Should Consider India’s Mining Industry

As global economies diversify and search for resource security, emerging markets like India are becoming hotbeds of industrial opportunity. India’s mining sector, in particular, offers rich potential for foreign investors—and among them, Russian entrepreneurs are uniquely positioned to benefit.

With its vast natural reserves, skilled labor force, pro-investment policies, and strategic trade relationships with Russia, India provides fertile ground for establishing and scaling mining operations. For Russian business owners seeking to expand internationally, India’s mining industry is not just an option—it’s a strategic advantage.

Here are five compelling reasons why the Indian mining sector should be on every Russian entrepreneur’s radar.

1. Vast Untapped Mineral Resources and Favorable Government Policies

India is the 5th largest producer of coal, the 2nd largest producer of steel, and a leading source of minerals such as iron ore, bauxite, mica, and chromite. However, only 10–15% of the country’s total mineral potential has been explored, meaning vast opportunities remain untapped.

In recent years, the Indian government has enacted major reforms to attract foreign investment:

• 100% Foreign Direct Investment (FDI) is permitted in mining and mineral separation for non-fuel and non-atomic minerals under the automatic route.
• Launch of the National Mineral Exploration Trust (NMET) and auction-based exploration licensing to streamline access for investors.
• Development of mining-specific industrial corridors to support infrastructure and logistics.

The government also aims to reduce import dependence on critical minerals and is actively encouraging international partnerships in exploration, mining technology, and mineral processing—a key opportunity for Russian expertise to integrate.

2. Strengthened India–Russia Strategic Partnership

India and Russia share a long-standing diplomatic and trade relationship that has evolved into a strategic partnership. Both countries have actively worked towards expanding their cooperation in energy, infrastructure, metallurgy, and mining sectors.

Recent developments include:

• India and Russia agreeing to boost bilateral trade to $30 billion by 2025.
• Discussions around Russian investment in Indian coal, rare earth elements, and battery minerals to support India’s transition to clean energy.
• MoUs between Indian public sector companies and Russian mining firms for resource sharing and technological cooperation.

Russian entrepreneurs can take advantage of:

• Policy familiarity and fewer diplomatic roadblocks when doing business in India.
• Better access to government-backed joint ventures and incentives due to positive bilateral relations.
• Entry through business delegations and trade missions coordinated by chambers of commerce from both countries.

In an increasingly complex geopolitical landscape, India represents a politically neutral, economically sound, and legally robust partner for Russian enterprises.

3. Rapidly Growing Domestic Demand & Export Gateway Potential

India’s mining sector is not only resource-rich but also demand-heavy. As the country urbanizes and industrializes at scale, demand for minerals and raw materials is expected to surge exponentially.

Key trends driving demand:

• The Indian government’s National Infrastructure Pipeline (NIP) plans to invest over $1.4 trillion by 2025, driving up mineral demand.
• Steel consumption is growing at 7–8% annually, leading to increased mining of iron ore, manganese, and limestone.
• With India’s push towards electric mobility, demand for critical minerals like lithium, cobalt, and graphite is growing rapidly.

Moreover, India is emerging as a regional export hub, thanks to its favorable trade agreements with Southeast Asia, the Middle East, and Africa. Setting up operations in India enables Russian businesses to:

• Access growing local demand from sectors like automotive, construction, and energy.
• Re-export minerals and processed materials to high-demand neighboring regions via well-established sea and land routes.
• Leverage Indian ports and logistics corridors such as Sagarmala and Bharatmala for cost-effective transport.

This dual advantage of a strong domestic market and international access creates a powerful business case for investment.

4. Low Operational Costs and a Talented Workforce

India offers a uniquely cost-efficient mining ecosystem. From labor to logistics to raw material sourcing, the cost of operations is considerably lower compared to most developed countries.

Major operational advantages:

• Labor cost efficiency: India’s wages for skilled and semi-skilled mining labor are highly competitive.
• Mining infrastructure: States like Odisha, Jharkhand, and Chhattisgarh have dedicated mining belts with robust road, rail, and power connectivity.
• Equipment and services: Availability of domestic equipment manufacturers and local service providers reduces import dependency and operational costs.

India also benefits from a rich academic and training ecosystem with specialized institutions such as:

• Indian Institute of Technology (IIT-ISM), Dhanbad.
• National Institute of Rock Mechanics (NIRM).
• Indian Bureau of Mines (IBM) training centers.

This ensures a steady pipeline of geologists, engineers, mining technicians, and regulatory professionals, available at a fraction of the cost compared to Europe or North America.

5. Business-Friendly Legal Framework and Reform-Driven Approach

Over the past decade, India has made significant strides in making its legal and regulatory environment more conducive to foreign investment, particularly in the mining and heavy industry sectors.

Key reforms that benefit Russian investors include:

• MMDR Act Amendments: Increased transparency, e-auctions for mining leases, and allowance for transfer of mining rights.
• Single-Window Clearance System for faster approvals and land acquisition.
• Enhanced ease of doing business: India ranked among the top 10 improvers globally for three consecutive years in the World Bank’s Doing Business Index.

For Russian entrepreneurs, this means:

• Clear timelines and guidelines for project implementation.
• Legal protection under bilateral trade treaties, including investment arbitration rights.
• Support from legal consultants and corporate law firms in India who specialize in foreign business setups and compliance.

Whether it’s forming a private limited company, navigating environmental clearances, or negotiating land use rights—experienced legal professionals in India can ensure a smooth entry and sustainable operations.

Next Steps: Entering India’s Mining Sector as a Russian Entrepreneur

If you're a Russian entrepreneur or mining firm executive considering entry into India, here are your actionable next steps:

1. Market Research: Conduct a feasibility study with the help of a local consultant or chamber of commerce to identify potential minerals, locations, and state-specific benefits.
2. Legal Consultation: Engage a law firm in India experienced in mining, FDI, and corporate structuring to guide you on company registration, compliance, and permits.
3. Partner Locally: Collaborate with an Indian entity (public or private) through a joint venture or technology-sharing model for a faster and risk-managed entry.
4. Participate in Tenders & Auctions: Keep track of state and central government tenders for mineral blocks and exploration rights.
5. Start Small, Scale Strategically: Pilot your operations in a single state or mineral category before scaling to larger or multi-state operations.

Conclusion

India’s mining industry presents an attractive, future-focused, and geopolitically strategic opportunity for Russian entrepreneurs. With abundant untapped resources, robust domestic and export demand, and a friendly legal and political environment—India offers the ideal platform to expand your global footprint in mining.

For Russian companies with strengths in extraction technology, resource management, and heavy engineering, this is the right moment to collaborate, invest, and grow in one of the world’s fastest-growing mining economies.