Mining sector output bounces back after years of chaos - India’s mining sector appears to be on a firm turnaround path after years of tumult with production of metallic minerals growing by nearly 20 per cent in the first eleven months of 2015-16 and total mineral output rising by 8.2 per cent, official data showed.

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Industry Scenario
Total finished steel production in India has increased at a CAGR of 4.70 per cent during FY12–
16, with country’s steel production reaching to 90.98 million tonnes per annum (MTPA) in FY16.
The country became the 3rd largest crude steel producer in 2015 & is expected to become the 3rd largest crude steel producer in 2016, as large public & private sector players strengthen steel
production capacity in view of rising demand.
Moreover, capacity has increased to 121.97 million tonnes (MT) in FY16, which is 11 per cent
more than FY15, while in the coming 10 years the country is anticipated to produce 300 MT of
India’s comparatively low per capita steel consumption & expected growth in consumption due to growing infrastructure construction, automobile and railways sectors has offered scope for growth
National Mineral Development Corporation is expected to increase the iron ore production 75
MTPA until 2021 indicating new opportunities in the sector
Domestic players’ investments in expanding & upgrading manufacturing facilities are expected to reduce reliance on imports. In addition, the entry of international players would provide benefits in terms of capital resources, technical know how & more competitive industry dynamics
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