Mining and Metals in India - 2015

Mining & Minerals - Evaluations / Other Metals

The outlook for the global economy is positive with growth momentum picking up in the U.S., India and South East Asia. However, the structural shift in the transitioning Chinese economy, could cap this momentum. Divergence of economic policies and performance across geographies and sectors will therefore, be the key theme in the near future. This sets the scene for continued volatility in currency, commodity and capital markets.

Globalization: No More a Choice but an Imperative
Globally, mining and metal companies continue to struggle with depressed prices and oversupply in majority of commodities. Many projects have been put on hold or are being re-planned given the current economic scenario. Companies across sectors are under pressure to review their strategies, business models and portfolios in order to remain competitive and seize unique opportunities presented by the dynamic and complex market conditions. The only way ahead for companies is to transform, expand and operate on a truly global setting. Companies have realized that globalization is no longer a matter of choice — indeed their long-term success depends upon it.

India: on Road to Recovery
In the case of India, leading economic indicators are pointing toward green shoots. While there are many economic parameters apart from a projected deficient rainfall, which can stoke inflation and derail the modest recovery, the broad consensus is that, the worst is behind us. GDP growth is now in an upward trajectory, and the Government is set to give a boost to manufacturing with its “Make in India” campaign. This is expected to give a fillip to base metal consumption, which mirrors GDP growth. Moreover, rapid growth in user industries such as infrastructure, power, construction and automobiles is expected to propel growth in the Indian mining and metals industry, signifying rising secular demand for steel, zinc, aluminum and copper in the future.

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