The Indian metals and mining industry stood at US$ 141.9 billion in 2011 and is expected to grow to US$ 305.5 billion by 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. India has the world’s fifth largest reserve base of bauxite and fourth-largest base of iron ore respectively, and accounts for about 7 per cent and 11 per cent respectively, of total world production.
India holds a fair advantage in cost of production and conversion costs in steel and alumina. The country is the world’s third largest exporter of iron ore with total exports of Indian iron and steel standing at US$ 8.1 billion in FY13. Booming construction, automobiles, and packaging industries are expected to lend substantial support to the Indian metals and mining sector.
The Government of India is encouraging private ownership for steel operations and other high priority industries. Foreign direct investment (FDI) of up to 100 per cent is permitted under the automatic route to explore and exploit all non-fuel and non-atomic minerals. The government has also reduced the duty payable on finished steel products and has streamlined the associated approval process.
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