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% in FY20 and FY21.
In FY20, crude steel production and finished steel production in India was 108.5 MT and 101.03 MT, respectively.
Between April 2020 and January 2021, India’s cumulative production of finished steel at 76.04 MT. For the period April 2020 and February 2021, India’s cumulative production of crude steel stood at 93.1 MT. Also, during the period April 2020 to February 2021 the crude steel production stood at In November 2020, the Steel Authority of India Limited (SAIL) reported 7% YoY growth in crude steel production.
Export and import of finished steel stood at 8.42 MT and 6.69 MT, respectively, in FY20.
Export and import of finished steel stood at 9.49 MT and 4.25 MT, respectively, between April 2020 and February 2021.
India’s per capita consumption of steel grew at a CAGR of 4.43% 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% 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$ 14.24 billion between April 2000 and September 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% in notified steel products covered under preferential procurement.
In 2019, the Government introduced Steel Scrap Recycling Policy with an aim to reduce import.
In January 2021, the Ministry of Steel, Government of India, signed a Memorandum of Cooperation (MoC) with the Ministry of Economy, Trade and Industry, Government of Japan, to boost the steel sector through joint activities under the framework of India–Japan Steel Dialogue.
Under the Union Budget 2020-21, the government allocated Rs. 39.25 crore (US$ 5.4 million) to the Ministry of Steel.
Note: kg - kilograms, P - Provisional, F - Forecast
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