Indian steel sector needs more investment

Indian steel sector needs more investment

Indian Steel Minister Ram Vilas Paswan indicated that the country's steel sector has to invest Rupees 1 trillion (around $23 billion) over the next five years in order to increase output and meet growing demand. A quarter of the necessary investment will come in the form a government injection of Rupees 250 billion (around $5.75 billion) over the next five years in state-owned Steel Authority of India Ltd. (SAIL), added Paswan. India is the world's eighth-largest steel producer, having produced nearly 39 million tons of steel during the fiscal year ended March 31, 2005. The country's steel consumption, which amounted to 33 million tons during the 2004/05 fiscal year, is expected to reach 62 million tons within ten years. This represents an annual growth of 7%. India exported 4.37 million tons finished steel and 177'000 tons of pig iron during the 2004/2005 fiscal year. Also, the country's steel exports were 2.05 million tons. Meanwhile, India remains a very attractive area for steel firms to establish new plants due to the country's huge deposits of coal and iron ore.