India has acquired a central position on the global steel map with its giant steel mills, acquisition of global-scale capacities by players, continuous modernisation, and improvement in energy efficiency. Steel companies from across the world have shown interest in the Indian steel industry due to its phenomenal performance.
In India, the steel industry plays a significant role in the economic growth. India is world's fourth largest crude steel producer in 2011-12 with 89 million tonnes (MT) as per provisional data and is expected to become the second largest producer of crude steel in the world by 2015-16. India is also the world's largest producer of sponge iron with a host of coal based units, located in its mineral-rich States. The major contribution of the steel industry focusses on strengthening the sectors, such as infrastructure, constructions, automobile, transportation, industrial applications etc.
Tata Steel has been named among the world's most ethical companies by an American think tank, Ethisphere Institute. Ethical business principles and practices have been the key differentiators of Tata Group and Tata Steel since inception, according to H M Nerurkar, Managing Director, Tata Steel.
The RNCOS research report titled, 'Indian Steel Industry Outlook to 2012,' highlighted that "Indian crude steel production will grow at a compound aggregate growth rate (CAGR) of around 10 per cent during 2010-2013," whereas the finished steel consumption is estimated to grow at a CAGR of around 12 per cent during FY 2012-14.
For India, growth in apparent steel use is expected to grow by 6.9 per cent in 2012 and by 9.4 per cent in 2013. The Indian steel producers have signed 222 memorandum of understanding (MoUs) with the State Governments for a planned capacity addition of about 275.7 30 MT by 2020.
There is a net increase in foreign direct investment (FDI) inflows into India in the metallurgical sector, including steel sector, highlighted Mr Beni Prasad Verma, the Union Minister for Steel. The amount of FDI inflow into the sector for 2011-12 was worth US$ 1,765.07 million, as per data provided by Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce.