Vote on Account 2014: India expected to become second biggest steel manufacturer by 2016

The total steel capacity of the country is currently at 89 mtpa as compared to 35 mtpa ten years ago. India has become the fourth largest steel producer in the world from 8th largest ten years ago. India expected to become the second largest by 2016.

Lately, the situation is improving for the steel and iron industries. Multiple factors are falling in place. For instance, the sharp rupee depreciation has helped the Indian manufacturers, as they are able to export more. There is a pick up in the western economies, which is again a good sign.

More and more mines which were banned are now becoming operational, especially the ones in Karnataka. Goa mining ban is expected to be lifted soon.

In the 12th five year plan (2012-17), the state steel companies have been given an outlay to invest around Rs 91,000 crore in their operations. This should help India to over take US and Japan and become the second biggest manufacturer after China.