Indian Steel Industry

3071 Words Feb 21st, 2018 12 Pages
One of the major indicator of economic development has always been the consumption of steel. Steel is an essential element in sectors such as housing, construction and land transportation, special steel’s use is growing in engineering industries such as power generation, petrochemicals and fertilizers. India is at the central position on the global steel map, with the establishment of new steel mills, continuous modernization and upgrading old plants, improving backward integration and energy efficiency.

Steel production in India has increased by a compounded annual growth rate (CAGR) of 8 % over the period 2002-03 to 2006-07. Growth in India is subjected to be higher than the world average, as the per capita consumption of steel in India, at around 46 kg, whereas the world average (150 kg) and that of developed countries (400 kg). Indian demand is projected to rise to 200 million tonnes by 2015. Considering the strong demand scenario, most global steel players are aiming for a major expansion, either through Brownfield or Greenfield route. By 2020, steel production capacity in India is expected to touch 275 million tones. Greenfield projects and Brownfield projects are estimated to add 28.7 million tones and 40.5 million tones respectively to the existing capacity of 55 million tonnes.

The growing consolidation in the steel industry…

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