Andhra Pradesh has 41% of India’s mica resources. Can it capture more of the value?

 

THE VALUE-ADD QUESTION

Andhra Pradesh has 41% of India’s mica resources. Can it capture more of the value?

The state’s geological advantage is clear. Turning it into a durable industry will depend on current mine data, competitive processing and a market that still wants natural mica.

By Murthy ASR  |  Biz Masala  |  11 October 2026

Mica is sold in many forms, from hand-sorted sheets to processed flakes and powders. This generated image is an illustration, not a photograph of an identified Indian mine or plant.

Andhra Pradesh sits at the centre of India’s mica story on paper. The Indian Bureau of Mines’ national inventory attributes 41% of the country’s reported mica resources to the state, ahead of Rajasthan at 28%. The estimate is striking—but it is a geological endowment, not a measure of how much the state mines, processes or sells today. [1]

That distinction matters as India’s mica industry asks policymakers for a stronger domestic value chain. The question for Andhra Pradesh is more specific than whether it has mica: can the Nellore belt convert an old resource advantage into reliable supply, processing jobs and higher-value products?

 

A trade story with a China-shaped question

India exported 115,954 tonnes of mica in 2024–25, and 69,490 tonnes—about 60%—went to China, according to figures from an IEEMA letter cited by Business Standard. The concentration gives the industry a reason to ask whether more processing and customer development can happen at home. It does not, by itself, show that exports are being sold below value or that the same tonnes could be profitably converted into finished goods in India. [2]

Illustrative export-chain scene. No particular company, port or shipment is depicted.

Where value can be added

The route from ore to saleable product can include sorting, grading, cutting, splitting, grinding and quality certification. Different grades serve different uses, including electrical insulation, paints and coatings, plastics, cosmetics and other industrial applications. Each step requires dependable feedstock, technical know-how, buyers and consistent specifications; a processing unit is not automatically a viable business.

An industry estimate cited in the same report compares roughly $99.4 million in raw mica exports with a much larger downstream-product market. Treat that comparison cautiously: it is an association’s estimate, not an independently audited calculation of value India could capture. The products in the wider market may use different inputs, grades, formulations and supply chains. Subtracting the figures would not produce an investment case. [2]

Demand is not guaranteed

The Indian Bureau of Mines has also recorded a counterpoint: natural mica faces substitutes, including reconstituted mica, and demand has changed over time. Its yearbook said resources were adequate for domestic needs and exports at the time of that assessment. Both observations argue for testing buyer demand and product economics before treating a larger domestic plant as the inevitable answer. [1]

 

Andhra’s resource lead—in an older inventory

Reported distribution of India’s mica resources by state. IBM’s inventory uses National Mineral Inventory data as of 1 April 2015; percentages are rounded and describe resources, not annual output. Trace occurrences are also reported in Jharkhand and Telangana. [1]

Measure	Reported fact	How to read it
AP share of resources	41%	National inventory basis: 1 April 2015; not a current production share.
India mica exports, FY25	115,954 tonnes	Industry-association figures as reported by Business Standard.
China share of FY25 exports	69,490 tonnes / ~60%	Shows destination concentration, not the value or profitability of each shipment.
Nellore mica-only leases	5; all 5 marked non-working	District register dated 5 July 2024; point-in-time record, not current output data.

 

The local reality check: Nellore

A Nellore district Mines & Geology register dated 5 July 2024 listed five standalone mica minor-mineral leases, all marked non-working. It also listed 18 leases for a broader mixed category—mica with quartz, feldspar and vermiculite—of which eight were marked working and ten not working. Those mixed leases are not mica-only operations, and the register predates mica’s reclassification in 2025. It is a useful prompt for reporting, not a present-day production census. [3]

Illustrative mica-bearing outcrop in a dry landscape. This generated image is not a verified view of a Nellore mine or Andhra Pradesh site.

 

A policy change, and a separate status question

In February 2025, the Union government reclassified mica from a minor mineral to a major mineral. That change affects the regulatory framework; it does not mean mica was automatically added to India’s list of critical minerals. The industry’s request for critical-mineral status is a separate policy proposal, and its merits should be tested against supply risk, strategic use, market demand and the costs of intervention. [4]

What Andhra Pradesh can do next

Start with a current baseline: reconcile active leases, mine output, grade mix, legal and traceable supply, processing capacity, employment and realised export prices. The publicly cited state resource share comes from 2015 data; the Nellore register used here is from 2024. Neither can answer what the sector looks like in 2026.

Then map the commercial chain. Which products can local processors make to buyer specifications? Which domestic users—electrical, coatings, plastics or others—will qualify and purchase them? What would power, logistics, waste handling and quality-control costs do to margins? A small number of buyer-backed pilots may reveal more than a large subsidy announced before demand is established.

Finally, make support conditional on outcomes: traceable domestic sourcing, tested products, repeat orders, skilled jobs and measurable local processing. If those conditions cannot be met, an export restriction or broad incentive could shift costs onto miners without creating a durable downstream business.

BIZ MASALA VIEW Andhra Pradesh has a strong starting asset, but resource share is not an industrial strategy. The state’s opportunity is to refresh the data, prove downstream demand and build processing around grades buyers will pay for. Critical-mineral status may be part of the debate; it cannot substitute for that market test.

Sources & reporting notes

[1] Indian Bureau of Mines, Indian Minerals Yearbook 2021: Mica. Resource distribution uses National Mineral Inventory data as of 1 April 2015; the report also discusses demand and substitutes.  Open source

[2] Business Standard, “India’s mica industry seeks critical mineral tag to counter China’s grip,” 9 October 2026. Export figures and the downstream-value comparison are attributed there to an IEEMA letter.  Open source

[3] Nellore District, Mines & Geology page and lease details, dated 5 July 2024.  Open source

[4] Ministry of Mines / Press Information Bureau, mica reclassified from minor to major mineral, February 2025.  Open source

Murthy ASR

Biz Masala