According to steel minister the demand for Steel is considering to grow over 10 percent on an average basis for the next 5 yrs as compared to 8 percent growth in 1991-92 & 2010-11. There has been a decline in the exports of iron ore but it is a non-renewable natural resource which should be conserved and used in long-term utilisation in the steel industry.
In the year 2010 India slipped one rank and was the fourth largest producer of steel with 68.3 MT of output compared to 63.5 million tonne in 2009. China being the number one steel producer in the world and then followed by Japan & US. State owned SAIL is looking for a massive expansion which will increase its current production of steel from 14 million tonne to 24 million tonne. For the expansion the company is most likely to spend around rupees 70000 Cr.
India maintains a lead position as one of the largest manufacturer of sponge iron or direct reduced iron (DRI). As per the government official report the per capita steel consumption in the last 6 years has increased from 38 kg in the year 2005-2006 to 55 kg in the year 2010-11.
“Bell the bull says: Steel Sector Contributes 2% to the GDP and employees around 5 lakhs people.”