1. ECONOMIC
& SOCIAL
IMPACT
OF VEDANTA
A report by Institute for Competitiveness

2. Gone are the days of policy paralysis and license-
quota-control regimes. India Inc. are India’s job-
creators. They are the nation’s wealth-creators.
Together, with mutual trust, we can gain, catalyse
fast and attain sustained national growth.
Creating shared value represents a broader conception of
Adam Smithʼs invisible hand. It opens the doors of the pin
factory to a wider set of influences. It is not philanthropy
but self-interested behavior to create economic value by
creating societal value. If all companies individually
pursued shared value connected to their particular
businesses, societyʼs overall interests would be served.
- Nirmala Sitharaman
“
“
- Michael E Porter and Mark R. Kramer

3. The ROLE OF
BUSINESSES
Economic
Prosperity
Employees Suppliers
Consumers
Investors
People’s
Well-being
Generating
employment
opportunitiesContribution
to Public
Finances
BUSINESS
Skilling &
Training
The private sector not only helps in
achieving the economic objectives but
also impact the social progress of the
country. They solve societal challenges
either by rebuilding business models
around social issues or through
increasing their social investments aimed
at enhancing ease of living.
The study
“Economic and Social Impact Analysis”
assesses the company’s impact beyond
the immediate effect created through
revenue growth.

4. The
STUDY
The study “Economic and Social Impact Analysis of Vedanta” released by Institute for Competitiveness, is aimed at analysing the impact of seven
companies of Vedanta,
Hindustan Zinc
Limited
Cairn
India
Bharat Aluminium
Company
Vedanta Aluminium
Limited
Talwadi
Sabo Power
Sterlite
Copper
Sesa Goa
Iron Ore
It looks
at the
Impact on
Economy’s Output
02
Employment
Generation
Tax
Contribution
0301
Social
Impact
04

5. DIRECT, INDIRECT
AND INDUCED IMPACT
DIRECT IMPACT INDIRECT IMPACT
INDUCED
IMPACT+ +
The factory employs lots of workman,
executives and ancillary staff. Its
operations generate GDP and tax for
the authorities
It also spends money with suppliers
who employ staff, generate GDP and
pay taxes. They use other suppliers in
turn
Employees (including of the suppliers)
spend their wages in the wider
consumer economy, generating more
GDP, jobs and tax revenues
Most of the sectors in the economy
are interdependent. Industries
purchase inputs from other
industries, employ labour and capital
to produce goods that are either sold
to final consumers or to other
industries. These economic flows
between industries are recorded in
the input-output tables.
The input-output tables are used to
quantify the impact of economic
change.
There are three types of impacts that
can be captured using the IO tables –
direct, indirect and induced impact.

6. VEDANTA’s IMPACT
ON ECONOMY’s OUTPUT
Direct Impact
(INR Crore)
Direct Impact
(As a % of GDP)
Indirect Impact
(INR Crore)
Indirect Impact
(As a % of GDP)
Induced Impact
(INR Crore)
Induced Impact
(As a % of GDP)
HZL 22,521 0.13 63,960 0.37 1,30,622 0.76
Cairn 9,536 0.06 18,786 0.11 48,729 0.29
Sesa 3,257 0.02 5,765 0.03 16,090 0.09
TSPL 4,207 0.02 11,106 0.06 23,936 0.14
Balco 9,023 0.05 15,971 0.09 44,574 0.26
Vedanta Aluminium 19,001 0.11 53,962 0.32 1,10,203 0.64
Total Impact of Vedanta 67,554 0.40 1,69,550 1.0 3,74,154 2.20
1.0%
Indirect Impact
The indirect impact of company through its supplier
network i.e. supplier’s operations, their contribution to
GDP, and ability to generate employment across value
chain is as large as 1 percent of India’s GDP
Induced Impact
2.2%
0.40%
Direct Impact
Vedanta directly contributes 0.40 percent
to India’s GDP through its operations
The induced impact of Vedanta’s operations that captures the
consumption patterns i.e. how the employees (including that of
the suppliers) spend their wages in the consumer economy,
generating jobs and impacting GDP is equivalent to 2.20 percent
of India’s GDP

7. EMPLOYMENT
GENERATION
Company Impact on
Employment
Total Number of
Employees
Employment
Impact per
Employee of the
Company
HZL 3,91,865 21,397 18.31
Cairn 1,11,571 7,970 13.99
BALCO 1,19,103 9,331 12.76
VAL 3,30,609 15,549 21.26
TSPL 9,676 1,493 6.48
Overall Impact 9,62,824 55,740 17.27
The employment multiplier examines how
many jobs are being created for one lakh of
output.
Vedanta is creating
9,62,824 man-years of employment
yearly through all of its group companies.
01
Vedanta Employee
17
Job Opportunities in the
economy
creates

8. Hindustan Zinc Ltd. (HZL) was set up in 1966 as a
public sector undertaking. However, as operations
were becoming unviable for the government after a
continuous downward trend in global zinc prices, it
decided to privatise the company in 2001 as a part of
Atal Bihari Vajpayee’s disinvestment plan.
The company, which was barely
breaking even when it was government-
run, witnessed a stark upswing in its
revenue and profits after being taken
over by Vedanta.
Privatization Story:
HINDUSTAN ZINC LIMITED
THE ACTUAL PROFIT AFTER TAX IN 2018
is INR 92,760 million while under government control this would have been INR 4,622 million.
The study highlights how privatization can help our
economy by reviving unviable public sector enterprises.

9. India managed to emerge as a net
exporter of copper since 2012. But due
to the closure of the Tuticorin plant of
Sterlite Copper, this trend was offset in
the year 2018- 2019.
The company also helps India in reducing its import bill and saving precious foreign exchange reserves.
Forex Savings for the Nation:
CASE OF STERLITE
Exports grew at an impressive
rate of
26%
3.9%
However, the country’s
remarkable gains from the exports
took a toss and registered a dip of
86.08 %
With a compound annual growth
rate of
between 2017-18 and 2018-19
From 2012-13
to 2017-18
The same year also witnessed a jump of 118.3 percent of increase in the
imports of refined copper.
One major implication of the fall in production is the increase in
India’s import bill. The production of Sterlite in 2017- 18 was 403 KT.
The global copper prices hover around USD 6,200 – 6,300 per tonne.
This implies that the closure of Sterlite has costed a hefty
loss of around USD 2.5 billion to the country.
Export and Import Trends of Refined Copper for the Indian Economy
Source: EXIM Bank

10. TAX
CONTRIBUTION
The companies in Vedanta Group contribute a high proportion of their revenue in taxes that can be used to create a
significant impact on different sectors of the economy.
Possible
Impact of
Tax Contribution
EDUCATION HEALTH & WELLNESS GDP
HZL
BALCO
VEDANTA
ALUMINIUM
TSPL
SESA GOA
13,800K
2,492K
925K
730K
4,364K
(For no. of Students) (Support no. of Medical officers
for a year)
(as % of GDP)
200K +
37K
24K
19K
117K
0.13
0.02
.007
.006
.037