2017 saw the global economy grow by 3.8% according to the IMF's World Economic Outlook (WEO). This was a 0.5% increase over the previous year and the fastest growth rate since 2011. This global uptick was driven by resilient growth in advanced economies combined with a continued pick-up in growth in emerging markets. Key drivers included an increase in investment spend, supported by an improved outlook and a rise in private consumption.
Global metals markets are still looking at China to play a key role given that it accounts for more than 50% of world metal consumption. However, India is projected to grow by 7.4% in 2018 and 7.8% in 2019, maintaining its status as one of the fastest-growing major economies in the world, according to the IMF's WEO.
In the medium term, growth is expected to rise gradually as structural reforms continue to be implemented, raising productivity and incentivising private investment. An amended MMDRA (Mines and Mineral Development and Regulation Act) in 2015 has brought increased clarity on the licencing around mining. Key regulatory reforms around opening commercial coal mining to the private sector and the launch of Open Acreage Licensing Policy (OALP) in the oil & gas sector to improve exploration, are some of the steps in the past year towards creating a more favourable operating environment.
Positive demographic factors such as an increasing workforce and urbanisation are driving a greater need for infrastructure development. The Indian government continues to invest in the infrastructure sector, having increased its spending in the Union Budget 2018-19.
Vedanta, as the only diversified natural resources company in India, is uniquely positioned to leverage India's growth potential by catering to that demand. With such a vast domestic market, everything we produce in India, we aim to sell in India.
We expect to see a continued focus and further investments in the infrastructure, transportation and power sectors. We also anticipate changes in government policy to incentivise domestic metal and energy production, and to reduce dependence on imports. These initiatives will lead to an increasing demand for domestically produced metals.
With various growth opportunities in the pipeline, we anticipate that our performance in FY 2018-19 will be even stronger.
We expect to focus on organic growth in areas where we have deep expertise: principally, oil & gas, and zinc. Equally, we continue to monitor markets and make our decisions with a strong sense of realism.
Some of the other factors that will continue to affect the mining industry in general and Vedanta in particular include:


Changing climate can have a dual impact on the natural resources industry. It can directly impact operations and performance and indirectly can affect supplies and increase energy costs. Vedanta is sensitive to the impact we have on the environment.
Vedanta is committed to addressing the challenges posed by climate change. Our energy management approach hinges on a two-pronged strategy:
Improving energy and process efficiency
Diversifying our energy portfolio to the extent possible
We continued to take sustained actions to address climate change. Our Sustainable Development Framework is in place, which includes an Energy and Carbon Policy, and an Energy and Carbon Management Standard. As responsible stewards of sustainable development, we report our GHG emissions as per the requirements of the World Business Council for Sustainable Development (WBCSD), World Resource Institute (WRI) GHG Protocol and Carbon Disclosure Project (CDP). Our zinc and lead mining operations are transitioning from open pit to underground mining. This will help us in reducing our carbon footprint.
Our Carbon Forum - a group-level body led by the CEO-Diversified Metals comprises of business COOs and representatives from Corporate HSE and Sustainability. We have formulated a Carbon Strategy and are planning to initiate carbon pricing. By putting a price on carbon, we will be able to reduce emissions while encouraging sustainable and robust growth.


As Vedanta grows across sectors and geographies, we want to ensure that we are able to do so in the most sustainable manner possible. To be able to deliver on this ambition, we need people who have global exposure and a proven track record of delivering sustainable solutions in the mining industry. We are also mindful that as we create new opportunities, we do so in a manner that enables gender diversity within the workforce as well as allows local communities to become part of this workforce - whether directly or with our multiple suppliers, vendors, and partners.
Vedanta has been attracting the right talent from across the globe due to our employee-centric human resources policies and culture that fosters entrepreneurship. The new, diverse talent that we attract is given the freedom to innovate and create.
We routinely induct a large numbers of university graduates, which gives us an influx of fresh minds, while providing them with lucrative growth opportunities. Our Global Leadership Programme provides an ideal opportunity to develop mutual appreciation for the best practices across the Group companies and leverage the synergy. This programme also helps the organisation create talented global resource pools that can bring out the best and excel in a multicultural environment.
Internal growth workshops identify young leaders through a structured process, in order to develop them into highly competitive leaders and provide them growth and recognition. We attract female candidates as our policies are progressive and women-friendly. We provide leadership development, women-networking forums and enhanced parental leave policy.


The metals & mining industry has always walked a fine balance between creating new economic value, ensuring that local communities benefit from the presence of the industry and minimising the impacts on the environment. In areas with indigenous populations, additional care needs to be exercised to ensure community buy-in. Given the nature and scale of the industry, challenges to social license to operate by local communities have been common in the metals & mining sector. In response companies and industry organisations such as IFC and ICMM have developed several guidelines and best practices to aid greater acceptance of the industry in communities.
Vedanta connects with the community even in the remotest areas where we operate. As responsible stewards of sustainable development, we create direct and indirect employment, empower local communities through initiatives in health and living standards; and add value to the economy. We also provide employment to candidates from the community in senior management and other positions to empower them and enable economic activity in the region
Apart from providing employment to the youth, we work for children's well-being & education, women's empowerment, healthcare, drinking water & sanitation, agriculture & animal husbandry, skilling the youth for new opportunities, environment protection & restoration, sports & culture and community infrastructure.
We are also committed to ensuring that indigenous communities have the opportunity to give free, prior, informed consent for new projects that we plan to undertake.