The existing production capacity stands at around Rs.7.5 lakhs tones per annum. Due to its anti corrosive properties, Zinc finds application in automotive industry, ships, steel goods and buildings.
The main consumer for zinc in the domestic market is the steel industry - over 70 %of zinc is used for galvanizing. The domestic Zinc industry is now under the private sector with two players Hindustan Zinc and Binani Zinc.
The demand for the metal is expected to grow by 12-15% in the next 5 years. By 2020, India would need a Zinc capacity of 14 lakhs tones per annum to become self reliant.
The world consumption of zinc annually totals up to around 10774000 tons. The three major nations where the demand for zinc is highest are China, USA and Japan. Zinc demand is expected to grow by 12-15%.By 2020 India would require a Zinc capacity of 14 lakhs tones per annum to become self reliant. The demand for Zinc in India is expected to remain strong in the coming years on account of growth in industries like infrastructure, realty, automobile, consumer goods and manufacturing.
India has approximately 4.3% share in the total zinc smelter capacity in the Asia Pacific region. The mining industry contributes less than 3% to GDP but Zinc production can increase this figure in the coming years. India needs to invest in exploration and mining of zinc.