Last Updated: September 17, 2019
Last Updated: July, 2019
India was the world’s second-largest steel producer@ with production standing at 106.5 MT in 2018. The growth in the Indian steel sector has been driven by domestic availability of raw materials such as iron ore and cost-effective labour. Consequently, the steel sector has been a major contributor to India’s manufacturing output.
The Indian steel industry is very modern with state-of-the-art steel mills. It has always strived for continuous modernisation and up-gradation of older plants and higher energy efficiency levels.
Indian steel industries are classified into three categories such as major producers, main producers and secondary producers.
India’s finished steel consumption grew at a CAGR of 5.69 per cent during FY08-FY18 to reach 90.68 MT.
India’s crude steel and finished steel production increased to 103.13 MT and 104.98 MT in 2017-18, respectively.
In 2017-18, the country’s finished steel exports increased 17 per cent year-on-year to 9.62 million tonnes (MT), as compared to 8.24 MT in 2016-17. Exports and imports of finished steel stood at 0.72 MT and 1.12 MT, respectively, in FY20P(up to May).
Steel industry and its associated mining and metallurgy sectors have seen a number of major investments and developments in the recent past.
According to the data released by Department for Promotion of Industry and Internal Trade (DPIIT), the Indian metallurgical industries attracted Foreign Direct Investments (FDI) to the tune of US$ 11.30 billion in the period April 2000–March 2019.
Some of the major investments in the Indian steel industry are as follows:
Some of the other recent government initiatives in this sector are as follows:
The National Steel Policy, 2017, has envisaged 300 million tonnes of production capacity by 2030-31. In 2018, steel consumption of the country is expected to grow 5.7 per cent year-on-year to 92.1 MT*. Further, India is expected to surpass USA to become the world’s second largest steel consumer in 2019*.
Huge scope for growth is offered by India’s comparatively low per capita steel consumption and the expected rise in consumption due to increased infrastructure construction and the thriving automobile and railways sectors.
Exchange Rate Used: INR 1 = US$ 0.0139 as of Q3 FY19.
References: Media reports, Press releases, Press Information Bureau (PIB), Joint Plant Committee (JPC)
Note: @ - Behind China, ^Except low grade (below 58 per cent, *according to World Steel Association
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
Last Updated: September 17, 2019
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