Over the past decade, India has emerged as a major participant in the global steel market, both as one of the most rapidly growing consumption centre and also a significant supply-side player to be reckoned with. The country is at an inflection point, where its buoyant economic situation and natural competencies promise to usher in an era of sustained high growth rates for the steel industry, facilitated by the Government's initiatives to create a supportive environment for its end-user sectors. These are, nonetheless, tempered by uncertainties regarding the swiftness with which pending structural bottlenecks can be removed, and clarity on policy issues concerning the upstream mining sector (like land acquisition, allotment of mines, iron ore exports, etc.) can be achieved. With rapid steelmaking capacity expansion to meet the projected rise in steel use, domestic finished steel production grew at a CAGR of 8.2 per cent during FY05-FY13. Despite of a robust growth in production, domestic steel producers have failed to match the growth rate of domestic demand for steel in the recent past. This has resulted in India becoming a net importer of finished steel products. However, with consistent increase in capacities, CARE Research foresees India shifting into a net exporter of steel in the next two years.
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