The strong growth in India has attracted many global steel players, with a number establishing large greenfield projects and others entering strategic partnerships or joint ventures with Indian steelmakers, according to an Ernst & Young report, Global Steel 2010 Trends, 2011 Outlook.
Major global players, POSCO and ArcelorMittal, are already looking at greenfield facilities in India, positioning themselves ahead of a boom in the local sector.
Mike Elliott, Ernst & Young's global mining & metals leader, commented, "China went through this massive industrialization process over the past decade and increased their intensity and greatly increased their amount of steelmaking capacity in the country."
He added, "India is starting to exhibit some of those signs of an increase in the demand side of things, where they are significantly in need of greater amounts of steel and therefore increasing their production capacity in the country and they are also benefiting from large amounts of iron ore reserves in the country as well."