Besides, the country should also strengthen the state mineral development corporations to enhance the exploration activities, Exim Bank said.
"The growth momentum in the country's mineral sector could be sustained through a comprehensive exploration policy to unearth the largely unexplored mineral wealth," the bank said in a study today.
India is the third largest producer of Chromium ores, contributing 18 per cent to the world production and is the fourth largest producer of iron ore.
Exports of ores and minerals from India grew by a CAGR of 34 per cent from $917 million in 1999-2000 to $7.028 billion in 2006-07, the bank said.
Exim said government should consider the implementation of mineral exploration tax credit, to attract much needed exploration oriented investment to India.
Similarly, the diversification of exports to other minerals other than iron ore would help the country to avoid the depletion of specific ores in the coming years, it said.
