India was the world’s second largest steel producer in 2019. India surpassed Japan to become the world’s second largest steel producer in 2019 with crude steel production of 111.2 million tonnes (MT). In India, as per Indian Steel Association (ISA), steel demand is estimated to grow 7 per cent in FY20 and FY21.
In FY20, crude steel production and finished steel production in India was 108.5 MT and 101.03 MT, respectively.
Export and import of finished steel stood at 8.42 MT and 6.69 MT, respectively, in FY20.
India’s per capita consumption of steel grew at a CAGR of 4.43 per cent from 46 kgs in FY08 to 74.10 kgs in FY19.
Government has taken various steps to boost the sector including the introduction of National Steel Policy 2017 and allowing 100 per cent Foreign Direct Investment (FDI) in the steel sector under the automatic route. According to the data released by Department for Promotion of Industry and Internal Trade (DPIIT), Indian metallurgical industries attracted Foreign Direct Investment (FDI) to the tune of US$ 13.40 billion between April 2000–March 2020.
The Government’s National Steel Policy 2017 aims to increase the per capita steel consumption to 160 kgs by 2030-31. The Government has also promoted policy which provides a minimum value addition of 15 per cent in notified steel products covered under preferential procurement.
In 2019, the Government introduced Steel Scrap Recycling Policy with an aim to reduce import.
Note: kg – kilograms, P – Provisional, F - Forecast