India to become major steel exporter

India is predicted to be a net exporter of steel in the next 10 years with additional capacity exceeding domestic demand. The country produced around 70mt of the alloy in FY11 and is expected to add another 10mt this year. At present, it imports around 7 million tonnes (mt) of specialised steel.

Tata Steel Marketing chief for flat products Prabhat Kumar, stated, "We are set to be a net exporter of steel from the present position of an importer in the coming 10 years, as production of the metal will exceed domestic consumption. While total production is projected to be around 167mt by FY20, domestic consumption will be around 147mt during this period," he added.

Kumar said the key sectors that will drive domestic growth are auto, construction, infrastructure and capital goods among others. The construction sector will grow at 8%, consumer durables at 11-12% and capital goods are likely to grow by 9-10% in the next 10 years.

Despite demand growth and capacity addition, they said there are huge challenges to overcome for sustaining a demand growth of 10-12% for the next decade.