India became the second largest steel producer of crude steel in 2019 with steel production at 111.2 MT. India was the world’s second-largest steel producer with production standing at 106.5 MT in 2018.
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.
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 2019, 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).
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.
The National Steel Policy of 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 is to grow by over 7.2 per cent in both 2019-20 and 2020-21.