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Strength of steel
INDIA'S rapid economic growth is being built on a frame of steel. Soaring demand by sectors like infrastructure. real estate and automobiles.
at home and abroad, has put India’s steel industry on the world steel map. The rapid rise in the production has resulted in India becoming the fifth largest pro-
ducer of steel in the world, up by two places, on the back of 50.71 million tonnes (mt) production of crude steel and 51.9 mt of finished steel. The production of finished
steel grew by 16.52 per cent, from 44.54 mt in 2005-06 to 49.39 mt in 2006-07. In the first half of the current fiscal year (April-September), production of fin-I ished carbon steel is estimated at 1 24.8 mt as against 23.25 mt during the corresponding year previous year, recording a growth rate of 6.6 per cent. During the same period, pig iron recorded a growth of 7.9 per cent to touch 2.58 mt. It is estimated that by 2015-16, India would become the second largest steel producer globally with an annual production of 137 mt.
Exports
Along with growth in production, exports have increased by 6.26 percent in 2006-07 over 2005-06 to touch 4.75 mt. Exports accelerated in the first six months of the curren i fiscal year, growing by 7.4 per cent to 2.6 mt from 2.42 per cent, in the same period last year.
Consumption
Driven a booming economy and concomitant demand levels, con-I sumption of steel has grown by 12.5 per cent during the last three years, I well above the 6.9 per cent envis aged in the National Steel Policy
I Steel consumption amounted to I 46.14 mt in 2006-07 compared to : 41.43 mt in 2005-06, recording a j growth rate of 11.36 per cent, which । is higher than the world average.
During the first half of the current year, steel consumption has grown by 13 per cent. A study done by the Credit Suisse Group says that India's steel consumption will continue to grow by 16 per cent annually till 2012, fuelled by demand for construction projects worth US$ 1 trillion.
The scope for raising the total consumption of steel in the coun try is huge, as the per capita steel consumption is only 35 kgs compared to 150 kg in the world and 250 kg in China. .With this surge in demand level, steel producers have been reporting encouraging results. For example, the top six companies, which account for 70 per cent of the total production capacity have recorded a year-on I year growth rate of 11.4 per cent, ’ 12.7 per cent and 9.7 percent in net sales, operating profit and net profit, respectively, during the second quarter of2007-08