The crude steel production capacity in India is expected to reach 112.5 million tonne by financial year 2016. In 2010-11, total installed capacity stood at 78 million tonne and the capacity utilisation was in the range of 84%.
Production of crude steel increased from 27.3 million tonne to 71.3 million tonne in last 10 years at a compound annual growth rate (CAGR) of 10% due to advancements in traditional steel making. Electric arc and induction furnaces have been the key drivers for increase in crude steel production, said an analysis done by Frost & Sullivan.
Market insight has found that the per capita steel consumption rose from 38 kg in 2005-06 to 57 kg in 2011-12. In 2011, overall steel consumption in India was around 67 million tonne per annum and the GDP growth was approximately 8% compared with 30.7 million tonne per annum consumption of steel and GDP growth of approximately 3.8% a decade ago, in 2001. Favourable government policies along with country?s economic growth have contributed to the steel sector?s fast growth, the analysis added.
