India's crude steel production has increased from 27.3 million mt to 71.3 million mt in the last 10 years, due to advancements in traditional steel making, according to market research conducted by the global business research and consulting company Frost & Sullivan. The research company cited electric arc and induction furnaces as the key drivers for increasing crude steel production in India.
According to the research, Indian crude steel production capacity is expected to reach 112.5 million mt by the financial year 2015-2016. In the financial year 2010-11, total installed capacity was 78 million mt and capacity utilization stood at 84 percent. Frost & Sullivan expects India, currently the world's fourth largest producer of crude steel, to become the world's second largest producer by 2015, if all the planned capacity expansion projects become operational.
Regarding the country's steel consumption, the research indicates that the per capita steel consumption rose from 38 kg in the financial year 2005-06 to 57 kg in the financial year 2011-12. Construction and infrastructure industries traditionally have the highest demand for steel, more than 60 percent, in the country. Among steel intensive industries in India, construction registered the highest growth rates over the past consecutive five years, while manufacturing is the second highest steel consumer industry followed by automotive.