NEW DELHI: In a major step to advance reforms and enhance governance in the mining industry throughout India, the Ministry of Mines released the State Mining Readiness Index (SMRI) and state-by-state rankings on Thursday. Additionally, the project satisfies a major pledge made in the Union Budget 2025-2026 to improve mineral development's competitiveness and transparency.
With an emphasis on non-coal minerals, the SMRI was created to evaluate states' performance and preparedness in overseeing and growing their mining industries. The framework assesses states based on a number of factors, such as exploration efforts, early mine operationalization, auction performance, and sustainable mining methods. Together, these metrics show a state's commitment to environmental responsibility, resource management effectiveness, and policy environment.
States have been divided into three groups according to their mineral endowment and resource potential in order to provide a fair comparison. Madhya Pradesh, Rajasthan, and Gujarat have taken the top three spots in Category A, which is made up of states with abundant mineral resources. Goa, Uttar Pradesh, and Assam were the top performers in Category B, which comprises states with a moderate amount of mineral wealth. In contrast, Punjab, Uttarakhand, and Tripura have risen to the top of Category C, which is made up of states with comparatively lower mineral endowments.
A senior official from the Ministry of Mines said the index “serves as a comprehensive tool to identify policy gaps and operational challenges while recognising states that have demonstrated exemplary performance in accelerating mining activities responsibly.”
The Ministry emphasized that the SMRI will serve as a mechanism for capacity-building and benchmarking, promoting inter-state learning and a cooperative but competitive approach to mining reforms. By indicating which states provide stable, reform-focused, and investor-friendly mining environments, it is also anticipated to draw in more private investment.
The SMRI's launch is in line with the Union Government's overarching goal of revolutionizing India's mining industry via sustainability, transparency, and digitization. In order to guarantee that ecological preservation and economic development are in harmony, the Ministry said that future iterations of the index will include more thorough information on environmental, social, and governance (ESG) factors.
By releasing this index, the Ministry of Mines hopes to promote ongoing development in all states and Union Territories, increasing the industry's ability to create jobs, build infrastructure, and boost the economy of the country.
