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 India, as per Indian Steel Association (ISA), steel demand to grow by over 7 per cent in both 2019-20 and 2020-21
In FY19, India produced 131.57 million tonnes (MT) and 106.56 MT of gross finished steel and crude steel, respectively.
Exports and imports of finished steel stood at 4.02 MT and 3.94 MT, respectively, in FY20P (up to September).
India’s finished steel consumption grew at a CAGR of 5.86 per cent to 50.87 MT in FY20 (till September’19). 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$ 113.12 billion has been witnessed in the metallurgical industries as Foreign Direct Investment (FDI).
The Government has launched the National Steel Policy 2017 that 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 which are covered under preferential procurement.
National Mineral Development Corporation is expected to invest US$ 1 billion on infrastructure in next three years to boost iron production.
As per Economic Survey 2018-19, steel production will touch 128.6 million tonnes by 2021.
Note: kg – kilograms, P – Provisional, F - Forecast