India is the fifth-largest producer of crude steel in the world (2008), with a production volume of 54.5 million tonnes. 222 memoranda of understanding (MoUs) have been signed by various states with an intended capacity of about 275.7 million tonnes and an investment of more than US$ 229 billion (INR 11,000 billion). India and China are the only countries to have registered positive growth in steel production in the period between January and March 2009.

The steel production capacity is estimated to reach 124 million tonnes by 2011–12. In 2008–09, the installed capacity for crude steel was estimated at 64.4 million tonnes, while production was estimated at 54.5 million tonnes, resulting in an 85 per cent capacity utilisation. Long-products constituted 57 per cent of the total finished steel consumption, while the remaining 43 per cent was constituted by flat-products in 2007–08.

The Eleventh Five Year Plan (2007–2012) has allocated investments worth US$ 490 billion for the core infrastructure sector, comprising power, roads, highways, railways, ports, airports, mining and irrigation. Steel majors such as JSW Steel and Tata Steel are investing to enhance the capacities of products such as TMT bars (rebars).

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