Steel
India is expected to become the second-largest steel producer in the world by 2016.

Indian Steel Industry Analysis

Latest update: September, 2016

Steel demand has outpaced supply over the last five years

  • In FY15, the consumption of finished steel grew to 76.99 MT while the CAGR increased to 5.74 per cent during FY08-15
  • Driven by rising infrastructure development and growing demand for automotives, steel consumption is expected to reach 104 MT by 2017
  • It is expected that consumption per capita would increase supported by rapid growth in the industrial sector, and rising infra expenditure projects in railways, roads & highways, etc.
  • For FY15, per capita consumption of steel in India was 60 kg against the world average of 222 kg
Growth

Demand supply gap resulting in increased imports

  • With growth in demand for steel outpacing growth in domestic production over the last few years, imports have increased
  • India was a net importer of steel till FY13, but turned a net exporter of the same in FY14. In 2015, India imported 9.32 MT of steel while exports declined to 5.59 MT in FY15 from 5.98 MT during 2013-14
  • During FY11-15, import of steel grew at a compounded annual rate of 9.01 per cent, whereas, exports increased at a CAGR of 11.32 percent
  • Total domestic demand for steel is estimated at 113.3 MTPA by 2016-17
Growth

 

Last Updated: September, 2016

India is the third-largest steel producer in the world. In 2015, India produced 91.46 million tonnes (MT) of finished steel. Total finished steel production in the country increased at a CAGR of 7.45 per cent over FY011–15.

Driven by rising infrastructure development and growing demand for automotives, steel consumption is expected to reach 104 MT by 2017. India’s steel production is expected to increase from 100 MTPA to 112.5 MTPA by FY16 and 300 MTPA by 2025. The Government of India has allowed 100 per cent foreign direct investment (FDI) in the steel sector under the automatic route. Nearly 301 MoUs have been signed with various states for planned capacity of about 486.7 MT.

A new scheme, ‘The scheme for the promotion of R&D in the iron and steel sector’, has been approved with budgetary provision of US$ 24.6 million to initiate and implement the provisions of the scheme as per the 11th Five-Year Plan which has continued in the 12th Five Year Plan. The development of technology for Cold-Rolled Grain Oriented (CRGO) steel sheets and other value-added products is also included under the policy purview and is allocated US$ 6.7 million.

Sectoral Presentation (September, 2016)

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