Steel is one of the most important, multifunctional and most adaptable materials which plays a key role in making lives convenient. Being the basic raw material for a host of manufacturing activities, steel forms the backbone for national economic development. The steel industry is often considered as an indicator of economic progress, because of the critical role played by it in infrastructural and overall industrial development of a country.
Indian Steel Industry contributes to all the facets of economy, including GDP, industrial and infrastructural development. The steel industry contributes approx. 2.5% to national GDP, employing 2.5 million people, directly & indirectly. The output effect of steel on Indian economy is approx.1.4 times, with an employment multiplier of 6.8 times.
India is currently second largest steel producer in the world. Crude Steel production has expanded from 101.45 MT in 2017 to 118.13 MT (provisional) from January 2021- December 2021. Crude Steel production in 2021 showed a growth of 17.8% over 2020. Capacity for domestic crude steel expanded from 137 MT Per Annum in 2017 to 154 MTPA (provisional) till December 2021.
Driven by rising infrastructure development and growing demand from sectors like automotives, construction, consumer durables & capital goods, India’s per capita consumption of steel grew from 46 kgs in FY08 to around 75 Kgs now. Consumption of total Finished Steel was 106 MT from January 2021-December 2021 showing a growth of 18.8% over the CPLY. Moreover, Production of Total Finished Steel stood at 111 MT showing a growth of 21.3% over the year.
Even though consumption of total finished steel has increased considerably from 90.68 MT in 2017-18 to 106 MT in 2021, Indian steel industry still has significant potential for demand led growth, underscored by the fact that the per capita steel consumption in the country at 70 kgs is much lower than the global average of 227.5 kg. The need of the hour is not just to enhance domestic steel consumption, but also creating a demand for Indian steel abroad and giving a boost to steel exports.
With the share of 6% in global crude steel production and 5.7% in global crude steel consumption, India has become one of the steel hubs in the world for both production and consumption of steel. Aligned with the Government of India’s National Mission of Atmanirbhar Bharat, the National Steel Policy 2017 targets a crude steel capacity of 300 MT by 2030 in the country.