ECONOMIC GROWTH AND SUSTAINABILITY: A CASE STUDY OF MINING INDUSTRY IN JHARKHAND, ODISHA AND CHHATTISGARH

Abstract

Jharkhand, Odisha and Chhattisgarh are the mineral rich states of India and contribute major share of production of coal, iron ore and limestone. Despite this wealth of resources, they continue to face high infant mortality rates, low SDG rankings and huge social challenges especially among tribal communities. The study examined the relationship between mining and social sustainability by using data from 2014 to 2024. The main indicator of social welfare was the Infant Mortality Rate (IMR) and a Panel Fixed Effects (LSDV) regression model was used. The factors considered in the analysis were per capita GSDP, mining share of GSDP, DMF expenditure, forest cover and the MMDR 2015 reform. The results are mining intensity is a strong and statistically significant positive predictor of infant mortality (r = 0.713, p < 0.001; β = +0.998, p = 0.006). This supports the idea that structural mineral dependence degrades health outcomes rather than improves them the resource curse, quantified. Second, per capita GSDP has no significant effect on IMR (p = 0.500), meaning the income generated by mining does not reach the communities who pay for it with their health and their forests. Third, the MMDR 2015 reform dummy is the most significant predictor in the model (β = −5.960, p < 0.001) and correlated with about six fewer infant deaths per thousand live births in the post-reform period evidence that structural policy reform can work when properly designed. Fourth, in these states, despite the collection of more than thirty thousand crore rupees across the three states, the impact of DMF expenditure on IMR has been statistically insignificant (r = −0.054, p = 0.776). This is a governance failure, not a design failure. The study highlights the need for urgent reforms in DMF governance structures, a regulation minimum allocation for healthcare from DMF funds, economic diversification away from mineral dependence and consistent enforcement of the MMDR compliance framework.