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Richly endowed with natural resources, Peninsular India has an important role in the economic development of the country. The importance of Peninsular India is mainly because of the following benefits from its location and rock formations:
(i) The Peninsular region of India is rich in both the metallic and non-metallic minerals. Mineral ores like iron, manganese, copper, bauxite, chromium, mica, gold, silver, zinc, lead, mercury, coal, diamond, precious stones, marble, building materials and decorative stones are found in abundance in this physiographic region. About 98 per cent of the Gondwana coal deposits of India are also found in the Peninsular region.
(ii) A substantial part of the Peninsular India is covered by black earth (Regur soil). The regur soil is conducive for the successful cultivation of cotton, millets, maize, pulses, oranges and citrus fruits. Some areas of south Peninsular India are suitable for the cultivation of tea, coffee, rubber, cashew, spices, tobacco, groundnut and oilseeds.
(iii) On the southern and eastern parts of Peninsular India are large stretches of Archaean, Dharwar, Cuddapah and Vindhyan formations in which red, brown and laterite soils have developed over time. These soils are the bases of rural economy.
(iv) The Western Ghats, Nilgiris and tire Eastern Ghats are covered by thick tropical moist deciduous and semi-evergreen forests. These forests provide teak, sal, sandalwood, ebony, mahogany, bamboo, cane, rosewood, iron-wood, and logwood as well as a large variety of forest products.
(v) The rivers flowing eastward into the Bay of Bengal make several gorges, waterfalls, rapids and cataracts, which have been harnessed for the generation of hydro-electricity. The rivers originating from the Western Ghats offer great opportunity for the generation of hydel power and irrigation of agricultural crops and orchards.
(vi) There are numerous hill stations and hill resorts, of which Ooty, Udhagamandalam, Kodaikonal, Mahabaleshwar, Khandala, Metheron, Pachmarhi, and Mount Abu are the most important.
(vii) Apart from teak and fuelwood, the forests of Western and Eastern Ghats are rich in medicinal plants.
(viii) The hilly and mountainous areas of the Peninsula are the abodes of many scheduled tribes. South of the Vindhyans is a predominance of Dravidian culture.