India has emerged as a ‘global steel saviour,’ and overtakes China, amidst other economies falling into recession. Prime Minister Mr. Narendra Modi is seeking to modernize roads, rail networks, and ports to compete with China as a manufacturing hub. This means that there would be a 6.7% jump in steel demand to around 120 million tonnes by 2023, as per the World Steel Association. India also overtook the US to become the world’s second steel consumer after China some years ago.
“The nation-building phase of any economy requires a lot of steel and commodities," said Mr. Jayant Acharya, Deputy Managing Director, Jindal Southwest (JSW) Steel Ltd., the nation’s biggest producer. India is expected to boost the country’s steel consumption to over 200 million tons by 2030. ArcelorMittal Nippon Steel India Ltd, a joint venture between an Indian and Japanese producer, seeks to boost the capacity by 30 million tonnes in the upcoming decade. Similarly, a South Korean manufacturer and Adani Group also plan to set up a facility in the future. The Ministry of Finance has estimated US$1.4 trillion, is required for the National Infrastructure Pipeline, 2025 project.
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