Among the exports of unprocessed raw materials from India, mineral ores have always been quantitatively significant. Iron ore, manganese ore and mica, which together constitute the bulk of these exports, increased their share in total export earnings from a little over 6 per cent in 1960/61 to nearly 10 per cent in 1970/71. It is necessary to point out that this aggregate figure conceals the distinctly different export trends in each of these minerals. Whereas the exports of iron ore grew at a phenomenal pace during the ten-year period, the exports of mica were virtually stagnant and manganese ore exports actually declined. The following analysis attempts to examine the reasons underlying these trends.

IRON ORE

Table 7.1 brings out the striking growth in India's iron ore exports during the period under study. Export earnings increased more than four times, rising from $35.8 million in 1960 to $158.7 million in 1970. Over the same period of time, the quantity of ore exported increased even more, rising from 3.2 to 21.2 million tons – at a compound rate of 20.8 per cent per annum. As a result of this rapid growth, the share of iron ore in total export earnings increased from 2.7 per cent in 1960/61 to 7.6 per cent in 1970/71. This share may have been higher if iron ore prices had stayed at their 1960 level. In reality, the prices declined, which is quite apparent from the downward trend in the average unit value of India's exports.