India has acquired a central position on the global steel map, on back of ever increasing demand from sectors like infrastructure, real estate and automobiles, at home and abroad. India was ranked the world's fourth largest crude steel capacity in 2011-12 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.
"With modernisation programmes of various public and private companies, the country will soon rise to second place," as per Dr Manmohan Singh, the Prime Minister of India.
India's steel making capacity is estimated to exceed 100 million tonnes (MT) by 2013 and the production is expected to reach 275 MT by 2020. The per capita steel consumption increased from 34 kilograms (kg) in 2004-05 to 59 kg in 2011-12.
The World Steel Association has estimated steel consumption in India to grow at five per cent in 2013. "Steel producers may see a spurt in demand in the medium term if the Indian Government implements its US$ 1 trillion infrastructure investment plan," as per India Ratings. India's steel-making capacity is slated to cross 100 MT in 2013 that will require about 160-170 MT of iron ore.
The steel industry is expected to add 12.8 MT of capacity in the second half of 2012-13, with the major contributors identified as SAIL (3.4 MT), RINL (2.3 MT), Bhushan Steel (2.1 MT) and Jindal Steel (2 MT).
Indian crude steel production is estimated to grow at a compound annual 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, as per a RNCOS research report titled, 'Indian Steel Industry Outlook to 2012'.
In addition, the Indian Bureau of Mines estimates the current pelletisation capacity in India to be around 20 million tonnes per annum (MTPA).