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PROJECT ON INTEGRATED STEEL PLANT SUBJECT - OPM TERM – II



Overview of Indian Steel Industry


The Indian steel industry has a history of 125 years and was a regulated
industry till 1991 when it was de-licensed and private players were encouraged
to manufacture steel. The sector received high priority for automatic approval
for foreign direct investment. The demand for steel was expected to race ahead
after liberalization so additional manufacturing capacities were added.
The Indian steel industry ranks 5th in the
world with an annual production of 53.1
million tonnes in 2008. India accounts for per
capita steel consumption of 38 kg/year, as
against that of 180 kg/year in China, 600
kg/year in Singapore and 400 kg/year in the
European Union and the US. The country’s per
capita steel consumption will have to rise
substantially to a level comparable with that of China to realize the country’s
expansion plans in manufacturing, transportation and power infrastructure.
Correspondingly, the steel output and demand in India is expected to surge to
110 million tonnes per year by 2020 from 53.1 million tonnes in 2007.