India was the world’s second largest steel producer, as of 2018. The country is slated to surpass USA to become the world’s second largest steel consumer in 2019.
In FY19, India produced 131.72 million tonnes (MT) and 106.56 MT of gross finished steel and crude steel, respectively.
Exports and imports of finished steel stood at 0.72 MT and 1.12 MT, respectively, in FY20P (up to May).
Steel consumption is expected to grow 7.1 per cent year-on-year to 102.8 MT in 2019F. India’s steel production is expected to increase from 106.56 MT in FY19 to 128.6 MT by 2021.
The 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. Between April 2000 and March 2019, inflow of US$ 11.30 billion has been witnessed in the metallurgical industries as Foreign Direct Investment (FDI).
India’s per capita consumption of steel grew to 68.9 kgs, during 2017-18. National Steel Policy 2017 aims to increase the per capita steel consumption to 160 kgs by 2030-31.
Note: kg – kilograms, P – Provisional, F - Forecast