India to be 2nd largest steel producer by 2013

By 2013, India is expected to become the second largest steel producer in the world with installed capacity increasing to 120 million tonnes. At present, it produces 80 million tonnes per year and ranks fourth after China, U.S. and Japan. Huge infrastructure needs of the country call for rapid expansion of steel production capacities, said The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

In the past one decade, the consumption rose at a compound annual growth rate of 9.4% against the GDP growth of 7.7%. But high levels of growth in construction, housing, automobiles and agriculture point towards steel demand exceeding by 12% in the near future.