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Jharkhand state a part of the Indian Peninsular Shield is a stable cratonic block of the earth's crust. Jharkhand is known for its diversified geological set up. The state owns 29.61% of forest area and about 40% of total mineral resources of India. During 2012-13, the value of minerals produced in Jharkhand was US$ 3 billion. The state had a 7.4 per cent share in the total value of minerals (excluding atomic and minor minerals) produced in India. Mining and quarrying sector contributed around 10.2 per cent to the state's GSDP and about 7.4 per cent of total value of mineral production in the country in 2012-13. In South Africa, mining sector is an important foreign exchange earner, with minerals accounting for a significant contribution to economic activity (18% of GDP), job creation (around one million), exports and foreign exchange earnings (more than 50%), attracts significant foreign savings (43% of Johannesburg Stock Exchange), accounts for 13.2% of corporate tax receipts & for 94% of electricity generation via coal power plants. In this paper, we explore the possibility of replicating the South African Model to the Mining Industry of Jharkhand, so that the said industry will be a single largest contributor of state GDP. If we are able to use the forex products extensively in this mineral-rich state, we will certainly lessen the gap of vertical inequality (rich and poor populations) and horizontal inequality (mineral-rich & mineral-poor regions like Singhbhum and Plamu districts).

“South African FX Earning Model: - A Replica of Growth for Mining Industry of Jharkhand”