Steel

India has become the world's fourth-largest producer of crude steel.

Steel Industry in India

Latest update: January, 2014

Market Size

In 2011, the Indian steel sector’s total market value was US$ 57.8 billion.

Market Size

Consumption

Infrastructure is India’s largest steel consumer, accounting for 63 per cent of total consumption in FY11.

Consumption

Market Value

India’s metals and mining industry recorded a strong 19.8 per cent expansion in 2011 to touch US$ 141.9 billion.

Market Value

Production

India is the world’s fourth-largest producer of coal and has the fifth-largest reserves globally.

Production

Related NewsMore

Last Updated: April 22, 2014

RSSRss

Get News AlertsGET NEWS ALERTS

We want to give Indian investors an opportunity to be a part of the world's largest steel company and would like to list Arcelor-Mittal in India…

L N Mittal
President and CEO, Arcelor-Mittal

Updated: January, 2014

SECTORAL REPORT | March, 2014

METALS AND MINING SECTOR REPORT | March, 2014

Introduction

India is currently the fourth largest producer of crude steel in the world and is expected to become the second largest in the near future. The total market value of the Indian steel sector stood at US$ 57.8 billion in 2011 and is predicted to touch US$ 95.3 billion by 2016. The sector contributes to nearly 2 per cent of the gross domestic product (GDP) and employs over 500,000 people.

Being a core sector, the steel industry reflects the overall growth of an economy in the long term. The demand for steel is also derived from other sectors such as automobiles, consumer durables and infrastructure. The Indian steel sector enjoys advantages of domestic availability of raw materials and inexpensive labour. Iron ore is also available in abundant quantities, providing a major cost advantage to the domestic steel industry.

The liberalisation of industrial policy and other initiatives taken by the Government of India have given a definite impetus for entry, participation and growth of the private sector in the steel industry. While the existing units are being modernised or expanded, a large number of new steel plants have also come up in different parts of the country based on modern, cost-effective, state of-the-art technologies.

Market Size

India’s real consumption of total finished steel stood at 53.789 million tonnes (MT) during April–December, 2013. Production for sale of the finished steel was 60.446 MT, registering a growth of 5.2 per cent during the period owing majorly to growth in production by major producers such as Steel Authority of India Ltd (SAIL), Tata Steel and Rashtriya Ispat Nigam Ltd (RINL).

Total steel production in India recorded a growth rate of 3.5 per cent during the period October 2012–October 2013. “Production of steel in India is expected to reach 149 MT by the end of the 12th Five Year Plan period,” as per Shri G Mohan Kumar, Secretary, Ministry of Steel.

India's iron ore pellet exports have grown by almost 11 times to 435,000 tonnes during April–October 2013–14, as compared to 40,000 tonnes exported in 2012–13. The industry expects the total exports of pellets during the current financial year to touch a level of 800,000 tonnes. At present, 36 pellet plants are operating in India, with a combined capacity of 63 million tonnes per annum (MTPA). Total expected capacity expansion and new plants together will add another 72 MT capacity by 2016–17.

Investments

India needs to invest US$ 210 billion over the next decade to achieve the steel production capacity of 300 MTPA by 2025 from the current 90 MT, according to Mr C S Varma, Chairman and Managing Director, Steel Authority of India (SAIL). Some of the major investments in the sector are as follows:

  • JSW Steel Ltd plans to commission its 2.3 MTPA auto-grade steel manufacturing unit at the Vijayanagar plant in Bellary, Karnataka by March 2014. The company has invested close to Rs 4,500 crore (US$ 726.10 million) for this unit.

    The new capacity will help JSW in meeting the demand of automobile industry for high-end products like dual-phase steel and strip steel. Currently, car makers import an estimated 3–4 MT of auto-grade steel for making outer body panels.

  • Novelis Inc, the US subsidiary of Hindalco Industries Ltd, plans to invest US$ 205 million to expand its aluminum automotive grade production capacity in the US and Germany. It will build new finishing lines at its plants in Oswego, New York, and Nachterstedt, Germany. Both lines will have an annual capacity of 120,000 tonnes.

    The latest expansions come amid escalating global demand from automakers for aluminum sheets, which the company expects to grow by more than 30 per cent a year through the end of the decade.

  • GVK Power & Infrastructure Ltd has received the Australian Federal Government's approval for its Abbot Point Port capital dredging project. The approval enables the mining of billions of tonnes of high quality, low sulphur, low ash and cleaner burning coal for consumption in the Indian and Asian markets.

    The company has also acquired coal mines in Queensland for US$ 1.26 billion and plans to invest up to US$ 10 billion in the mine-cum-rail infrastructure projects in Australia.

  • Tata Steel has won an order to manufacture 60,000 tonnes of high-quality rail for a new high-speed line linking the two holy cities of Mecca and Medina in Saudi Arabia. The new line is expected to carry around 160,000 people a day, and even more during the Hajj pilgrimage.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

Posters

Brand India Pharma

PROVEN METTLE IN STEEL

India is tyhe world's largest producer of crude steel, and is currently doubling its production capacity.

+ More >

Brand India Pharma

IBEF Publications

IBEF Publications

IBEF Publications:
Innovations from India:
Harbinger of Change

Order Now >

+ More Publications >

IBEF Publications

Perspectives More


Loading blogs ...

ideas More

Ideas

Happily Unmarried : For the Fun of It
"It's a revolt against convention. Happily Unmarried counters the propensity of marketers to create products in the conventional backdrop of happily married couples...

JOIN IBEF.org

Join IBEF.org now. Enjoy FREE subscriptions downloads, updates and more.

Error

Already a member?
Login / Retrieve Password

Copyright © 2010-2015 India Brand Equity Foundation

All material, information, data, images or content on this website is subject to copyright or other applicable intellectual property laws and no part of it can be reproduced in any form (including paper or electronic form) without prior written consent and approval from IBEF. Infringements are subject to prosecution under the applicable laws. For consent related queries and conditions,
please write to info.brandindia@ibef.org

IndiaAn initiative of the Ministry of Commerce & Industry, Government of India