India is the world's fourth largest producer of crude steel; the country is expected to become the second largest producer by 2015.
The total market value of the steel sector in India was estimated at US$ 55.1 billion in 2011 and is expected to touch US$ 83 billion by 2014. Total crude and finished steel production grew at a compound annual growth rate (CAGR) of 6.6 per cent and 4.2 per cent to over FY08-11 to 69.6 million tonnes (MT) and 66 MT respectively. The Ministry of Steel has predicted finished steel production levels at 115.3 MT by FY17.
The construction and infrastructure sector is the largest consumer of steel in India, accounting for 61 per cent of total consumption in 2010. Total consumption of steel exceeded production and grew to 70.9 MT in FY12 as against 66.4 MT in FY11; over FY07-12, consumption has expanded at a CAGR of 8.7 per cent.
The Government of India has allowed 100 per cent foreign direct investment (FDI) in the sector through automatic route. In view of the changed dynamics of the sector both globally as well as domestically, the Ministry of Steel has initiated the process of drafting the new National Steel Policy. The demand for steel is expected to be robust with increasing capacity addition by the automotive industries. Further, increasing investment in infrastructure is set to raise steel demand by roughly 40 million tonnes per annum (MTPA) from FY13-17.
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