Metals & Mining Industry ALL SET TO ACQUIRE A NEW SHINE

Steel production and consumption are regarded as indicators of economic progress and industrial development and the backbone of any economy. Mandar Wagh explains how being the world's second-largest producer of crude steel, the reopening of the Chinese economy, the government's focus on infrastructure and the initiatives taken all contribute to the sector's growth

- Mandar Wagh

Due to its abundant reserves of iron ore, manganese ore, bauxite, chromium and other mineral salts as well as its huge deposits of coal, lead, zinc, silver and gold, India is a natural powerhouse and one of the premier destinations for the metals and mining industry. States with significant mining activities include Andhra Pradesh, Jharkhand, Odisha, Rajasthan, Karnataka, Madhya Pradesh and Maharashtra. India’s strategic location allows for the development of export potential as well as rapid growth in the Asian markets. It provides competitive advantages to end-use sectors like building and infrastructure, automotive and electricity by supplying them with crucial raw materials at affordable pricing.

The industry has the potential to have a significant impact on GDP growth, foreign exchange earnings, etc. It is therefore a fully-fledged government-backed industry that supports India’s entire infrastructure and development sector. Furthermore, Indian Steel Association, Aluminium Association of India, India Stainless Steel Development Association, Coal Consumers Association of India and Federation of Indian Mineral Industries are some of the organisations that assist to cater the needs of the industry and deal with related activities.

Market Size

The global metal market expanded from USD 3,940 billion in 2022 to USD 4,230 billion in 2023 at a compound annual growth rate (CAGR) of 7.4 per cent. The metal market is expected to grow to USD 5,500 billion in 2027 at a CAGR of 6.6 per cent. In 2021, the global steel market was estimated to be worth USD 1,307 billion. The steel industry is expected to grow at a compound annual growth rate (CAGR) of 3.47 per cent from USD 1,353 billion in 2022 to USD 1,718 billion by 2030. Among metals, steel has historically held a dominant position.