The Indian steel industry has witnessed astounding economic growth over the years. As per the current scenario, India has developed itself as the world’s second-largest steel-producing country, overtaking Japan. Even though the Covid-19 pandemic has negatively affected the expected growth plan for the Indian steel industry, SAIL is still of the view that the sector holds a bright future, as the government has a defined plan to increase its infrastructural expenditures, along with a simultaneous check on the low per capita consumption.
With the increase in the availability of raw materials like iron ore and cost-effective labor, the steel sector has majorly contributed to India’s manufacturing output, marking the production of 111.2 million tonnes in 2019. India’s steel export has reached a record level of 17.4 million tonnes in FY21, exceeding last year’s level by 55.5 percent. Indian Steel Association (ISA) envisions growth in steel consumption by 7.2 percent in 2019-20 and 2020-21.
Some of the major players like Tata Steel have invested US$ 3.64 billion in their Kalinganagar steel plant to increase their capacity from 3 million tonnes to 8 million tonnes. JSW steel aims to supply approximately 1.5 lakh tonnes of TMT Rebars to Metro Rail Projects across the country for the year 2020. Jindal Steel and Power Limited (JSPL) plans to increase its capacities to 15.9 MTPA by 2024 from the current 8.6 MTPA.
SAIL has doubled the steel production capacity at five of its steel plants in September 2020 to become self-reliant. Therefore, with the expected total investment of US$ 24.88 billion, SAIL aims to increase its production capacity from 13 MTPA to 15 MTPA by 2025.
When it comes to the country’s development, government initiatives are also a big help. As per the 2020-21 Union Budget, the government allocated Rs 39.25 crore to the Ministry of Steel with an aim to create infrastructure for the economy to propel in the defined sector.
The Ministry of Steel is doing its part by establishing a Steel Research and Technology Mission of India (SRTMI) in collaboration with private and public sector steel companies to frontline research and development activities in the iron and steel industry with an investment of Rs 200 crore.
With these long-term plans for the steel sector, the country aims to achieve 300 MTPA capacity by 2025.