Mining was a profitable business during British colonial times. However, although the British did indeed support coal, gold, silver, iron ore and steel mining, they did not look favorably upon mining other metals such as lead. They believed that India's development of metallurgy would lead to production of weapons for the "natives," a potential threat to British rule. The British implemented the Arms Act in 1878 to outlaw Indian ownership of firearms and limited Indians from mining and working metals that might "sustain it in future wars and rebellions." (14) Several mines were actually closed down under British rule.

IV.4 Coal Mining Large-scale commercial coal mining in India began in 1774 under the East India Company in the Raniganj Coalfield along the Western bank of the Damodar River. The introduction of steam locomotives in 1853 made possible the effective transportation of coal from the mines to urban centers and ports (15). India's output of coal rose from 2,203 thousand metric tons in 1890 to 30,695 in 1947 (16). Coal mining proliferated during and after World War I; from 1920 to 1930, national coal output increased from 18,250 to 24,185 thousand metric tons (16a). However, coal mining declined during the early 1930s, when the output dropped by more than 4,000 thousand metric tons in just three years. The facts collaborate with other sources that claim Indian industries declined along with Britain's economic stagnation during the 1930s (17).

IV.5 Iron Ore Mining India's output of iron ore increased significantly during British rule, though there was a small drop in production during the early 1930s. In 1912, the national output in thousand metric tons was 24. By 1947, the quantity had reached an astounding 1,625 (18). Iron ore mining will be discussed in further detail below in the secondary sector, which deals with the iron and steel smelting industries.

IV.6 Gold and Silver Mining India's total output of gold in 1885 was only 0.2 metric tons. However, with the expansion of gold mines, output reached an all-time high in 1915 at 17.3 metric tons. The gold output quickly decreased after the 1915 peak, and in 1947 only amounted to 5.2 metric tons (19). As for silver, India was a major importer, not an exporter or a producer nation. According to the American Council Institute of Pacific Relations in 1933, China and India were longtime importers of silver, as opposed to exporter nations like the United States, Mexico, Canada, and Australia.