P. K. Misra, secretary of India's steel ministry, has stated that, in order to meet domestic steel demand from infrastructure construction and automobile manufacturing, steel output in India in the current financial year (April 2011-March 2012) may increase by 15 percent. Domestic steelmakers Steel Authority of India (SAIL), Rashtriya Ispat Nigam Steel (RINL), Essar Steel (Essar) and Bhushan Steel are all expected to increase their outputs.
Mr. Misra went on to say that Indian steel demand in the new fiscal year is expected to increase at least by about 10 percent, though domestic steel prices are foreseen to remain stable in the next two to three months, mainly due to ample supply and lower raw material prices. The steel ministry secretary also said he expects the completion of some greenfield projects will boost annual crude steel production in India to 130 million mt by 2015 or 2016.
India is the world's fifth largest steel producer. Its steel output in the last financial year increased by 8 million mt, reaching 80 million mt. A number of major foreign steel producers, including ArcelorMittal and POSCO, plan to build new steel mills in India.