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Class : 11
Unit : Economics

What are the role or importance of mineral resources in Nepal.

Ans : The role or importance of mineral resources are explained below: i) Development of industries:- Mineral resources have important role in the development of industries. The heavy machinery and equipment needed for industries are made from mineral resources. Therefore, a mineral resource is important for industries development. ii) Source of energy:- The mineral resources such as petrol, gas coal etc. are the major source of energy. Optimum utilization of mineral resources can be used to meet growing energy demand. iii) Source of employment:- The existence of mineral resources and their proper utilization provides employment opportunities to the people. The mineral resources provide direct as well as indirect employment opportunities. iv) Provides employment opportunities:- Most of the people in Nepal are engaged in agriculture occupation. If there is development of mineral resources, it requires more employment and reduces the unemployment in the country. v) Modernization of agriculture:- Establishment of mine based industries assists to produce modern agricultural tools, manure and other fertilizers. Such type of modern fertilizers can be used for the large scale production of different types of food crops cash crops, vegetables, fruits etc. vi) Source of foreign currency earning:- Nepal can earn large amount of currency by exporting its minerals, if it could extract large quantities of copper, marbles, iron ore etc. vii) Development of transport, communication and electricity:- Development of transport and electricity need heavy equipment’s which are the outcomes of mineral resources. viii) Source of public revenue:- Optimum utilization of mineral resources helps to establish large scale industries. Nepal has greater scope of cement, zinc, coal, etc. The government can imposed different type of taxes and other duties on such products which are the major source of public revenue.
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