India is the world’s second-largest steel producer. The Indian Steel Industry has recently seen good growth thanks to easy availability of 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 classified into three categories - major producers, main producers and secondary producers. India's current steel producing capacity is about140 mtpa and the figure is anticipated to rise to 300 mtpa by 2030-31.
India’s finished steel consumption grew at a CAGR of 5.2% during FY16-FY20 to reach 100 MT. India’s crude steel and finished steel production increased to 108.5 MT and 101.03 MT in FY20P, respectively.
Between April 2020 and February 2021, India’s cumulative production of finished steel was at 85.60 MT.
For the period April 2020 and February 2021, India’s cumulative production of crude steel stood at 92.78 MT.
Export and import of finished steel stood at 9.49 MT and 4.25 MT, respectively, between April 2020 and February 2021.
According to the data released by Department for Promotion of Industry and Internal Trade (DPIIT), the Indian metallurgical industries attracted Foreign Direct Investment (FDI) to the tune of US$ 14.24 billion in the period April 2000-September 2020. Under the Union Budget 2020-21, the Indian government allocated Rs. 39.25 crore (US$ 5.4 million) to the Ministry of Steel.Future Prospects
The National Steel Policy envisages 300 million tonnes of production capacity by 2030-31. The per capita consumption of steel has increased from 57.6 kgs to 74.1 kgs during the last five years. The government has a fixed objective of increasing rural consumption of steel from the current 19.6 kg/per capita to 38 kg/per capita by 2030-31.
As per Indian Steel Association (ISA), steel demand will grow by 7.2% in the coming fiscal.