Indian Economy News

India's steel production can go up to 500 million tonnes by 2050

  • IBEF
  • August 2, 2023

According to a senior executive at mining major, BHP, India's production of steel might double to 500 million tonnes by 2050, roughly four times the current output, as New Delhi strives to support its apparent economic ambitions with quick capacity expansion for the principal infrastructure alloy.

According to Ms. Vandita Pant, Chief Commercial Officer (CCO) of BHP, the multi-national mining corporation, which supplies energy needs for the second-largest steel sector in the world after China, may be a significant growth partner if India increases its output to support rapid economic growth. She informed that about 36% of India's demand for met coal comes from BHP.

The primary raw material needed in the making of steel is met coal, also known as coking coal, and India is dependent on imports to meet this requirement. About 40% of the met coal portfolio owned by BHP in Australia, the largest natural resource mining corporation in the world, is exported to India. BHP counts India as one of its top three customers.

According to the National Steel Policy, India produced over 125 million tonnes of steel in FY23, and New Delhi intends to increase that number to 300 million tonnes by 2030.

India is one of the major importers of coking coal, with 69 million tonnes in 2022. BHP presently has its footprint in the coking coal, iron ore, nickel, copper, and potash industries.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.