Last Updated: March 26, 2020
Last Updated: March, 2020
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. India’s steel production capacity has expanded to 137.975 million tones in FY19. India surpassed Japan to become the world’s second largest steel producer in 2019, with crude steel production of 111.2 million tonnes.
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 7.5 per cent during FY08-FY19 to reach 97.54 MT. India’s crude steel and finished steel production increased to 106.56 MT and 131.57 MT in 2018-19, respectively. In FY20 (till February 2020), crude steel and finished steel production stood at 100.78 MT and 94.01 MT respectively.
During 2018-19, 6.36 MT of steel was exported from India. Exports and imports of finished steel stood at 7.78 MT and 6.39 MT, respectively, in FY20P (up to February 2020).
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$ 11.45 billion in the period April 2000–December 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. The per capita consumption of steel has increased from 57.6 kg to 74.1 kg during the last five years.
As per Indian Steel Association (ISA), steel demand to grow by over 7.2 per cent in both 2019-20 and 2020-21.
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.
Note: Conversion rate used as on January 2020, Re 1 = US$ 0.01402
References: Media reports, Press releases, Press Information Bureau (PIB), Joint Plant Committee (JPC)
Note: @ - Behind China, ^Except low grade (below 58 per cent)
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
Last Updated: March 26, 2020
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