India is rich in mineral resources and has large reserves of primary metal ores such as iron ore, bauxite, chromium, manganese and titanium. 100 per cent foreign direct investment (FDI) is permitted by the government under the automatic route for mining of metal ores, including precious metals and minerals.

The country is strategically located, with its proximity to developed European markets and fast-developing Asian markets, for export of steel and aluminium. The metals and mining sector* was valued at US$ 79.9 billion (INR 3,835.4 billion) in 2008, registering a year-on-year growth rate of 32.7 per cent in 2007 and a compound annual growth rate (CAGR) of 22.9 per cent from 2004 to 2008. The number of mines that reported mineral production (excluding minor minerals, petroleum, natural gas and atomic minerals) in India was 2,954 in 2008–09.

The domestic demand for steel is estimated to grow at an annual average rate of more than10 per cent in the next five years. Finished steel consumption grew at a CAGR of 9.3 per cent, as compared to a production CAGR of 6.7 per cent between 2004–05 and 2008–09. Wire rods and rolled aluminium products constitute more than half of total aluminium production.

Metal manufacturers are increasing their R&D expenditure and focusing on technology-driven processes to improve their productivity and reduce costs. The power segment is the largest consumer of coal, and the trend is expected to continue due to the sustained growth of power demand and the government's mission of 'Power for all'* by 2012. Tata Steel Ltd, Steel Authority of India Ltd and J S W Steel Ltd are key players in the metals and mining scene in India.

Click Here to Download