Small-scale mining is more prevalent in India. The maximum production capacity of 50,000 tonnes/year has been accepted as a criterion to Indian small-scale mine. Such mines constitute about 90% of total number of mines, 42% of the total non-fuel minerals and metals, 5% of the fuel minerals. Some 3000 small scale mines account for a work force of about 0.5 million people. Yet this sector is a neglected sector in Indian economy and still considered as an unorganized sector. This paper examines the contribution of small-scale mines to employment and national mineral production, practices, and Indian policy on small-scale mining. It identifies the drawbacks in the existing Government policy and discusses the role of Government for up gradation in this sector. It focuses the need for technical up gradation and to ensure the economic and social infrastructure. It also discusses how the pursuit of sustainable livelihoods, poverty alleviation and indigenous peoples right in artisanal and small-scale mining be more effective when these communities are disadvantaged or neglected by Government policies. This paper concludes that this sector can make significant contribution to Indian economy and employment generation. It recommends that by establishing mining centre consist of shared mining and processing facilities, educating and training related initiatives it can be achieved.