The Indian metals and mining industry is expected to grow from US$ 141.9 billion to US$ 305.5 billion during 2011-2015.
Iron and steel is the largest segment of the Indian metals and mining industry, accounting for 68.5 per cent of the overall industry value (2011); coal is the other major sub-segment with a 26.5 per cent share. The country is also the world’s third largest exporter of iron ore with total exports of Indian iron and steel standing at US$ 6.5 billion in FY12 as compared to US$ 5.2 billion in FY07. India has the world’s fifth largest reserve base of bauxite and fourth-largest base of iron ore, which accounts for about 7 per cent and 10 per cent respectively of total world production.
Iron and steel being a core component of the real estate sector, demand for these metals is set to continue given the strong growth expectations for the residential and commercial building industry. Further, rise in infrastructure projects and sustained growth in automobile sector continue to provide lucrative business opportunities for steel and aluminium producers.
The Government of India is encouraging private ownership for steel operations and other high priority industries. FDI up to 100 per cent is allowed in the mining sector under the automatic route.
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