Indian Steel Industry Outlook to 2012

Tuesday, 1 Feb. 2011

The Indian steel industry has made a rapid progress on strong fundamentals over the recent few years. The industry is getting all essential ingredients required for dynamic growth.
The government is backing the industry through favorable industrial reforms, while the private sector is supporting it with investments worth billions of dollars.
Even in the tough times of economic slowdown, the industry succeeded to sustain its positive growth momentum on the strong fundamentals of domestic demand from construction, automobile and infrastructure sectors.
With an impressive track record, the country has become a reputed name in the world steel industry.
Global steel giants from all over the world have shown interest in the industry because of its phenomenal performance. For instance - the crude steel production in India registered a moderate year-on-year growth of 2.7% in 2009 and reached 56.6 Million Metric Tons.
On the other side, some Asian countries such as Japan and South Korea saw significant decline in their production levels. This further signifies the resilience and strength of the Indian steel industry against external risk factors.
The global economic slowdown hampered the growth curve of various steel intensive industries such as construction in 2009 and its impact also fell on steel demand. However, the government proactive incentive plans to boost economic growth by injecting funds in various industries like construction, infrastructure automobile and power will help the steel industry to again achieve its previous growth trajectory.
Steel consumption in India is expected to grow significantly in coming years since per capita finished steel consumption is far less from its regional counterparts. In 2008, per capita finished steel consumption stood at an estimated volume of around 44 Kg, which represents tremendous growth potential for coming years. (source:Companiesandmarkets.com)