India is now the 3rd biggest economy in the world after China and the United States. It is a country that has a high population with more purchasing power parity backed with an expanding economy. As the government is gearing towards boosting industry and further expanding commercial activities, the country is further expected to grow in the coming years.
When it comes to natural resources, India also holds huge reserves of the basic metals which can last for more than 100 years. This makes the country one of the leading producers of copper, aluminum, and steel. These natural minerals are crucial as they are used for the production of a wide range of products from automobiles to electronic devices.
India occupies a spot among the top 5 metal producers from all around the globe. From 2013 to 2014, there was a demand of about 103 MTPA for iron ore and 90 MTPA for steel. The steel produced here is used by different industries like automotive, infrastructure and construction among many others.
Metal production constituents
The production of metallic minerals in the country had a total value of INR 426 INR in the year 2013 to 2014. The total precious metal value amounts to 20 INR billion while the other non-ferrous production amounts to 70 INR billion.
The percentage share of metal production includes the following:
- Basic Metals: 79%
- Precious Metals: 5%
- Other non-ferrous metals: 16%
Based on data, basic metal production accounts for the highest percentage while other non-ferrous metals rank second and the least is precious metal production at 5%.
India’s metal industry profile
With a series of government policies banning mining, iron ore mining has experienced a negative impact. From 2009 to 2012, the growth decreased but eventually picked up in 2013.
Another reason leading to the decrease in growth is the decline in exports due to heavy export duties and decreasing global prices.
Looking at the iron ore production in the country, nine-tenth of the production is found in five states. Odisha holds 47% of the iron ore production followed by Chhattisgarh at 29%, Jharkand, Karnataka, Goa and the rest of India accounts at 3%.
Despite the decline, the metal industry is still projected to increase as steel product is expected to grow at 10%. This accounts for a high share of the industry’s metal production. In the upcoming years, it is expected to surpass 100 MT. The specialties of Indian companies include wire rods, tubes, TMT bars, rails and plates, and coils.
Based on country data, metal production is open for 100% foreign direct investment, this is a good economic opportunity for potential investors interested in investing and for current companies looking for additional capital. Mining companies that will be granted mining licenses will get a license valid for 50 years as the Indian government encourages foreign investors to boost their metal industry.