India is the world’s second-largest producer of crude steel, with an output of 9.5 MT. In FY22(till January), the production of crude steel and finished steel stood a 98.39 MT and 92.82 MT, respectively. Crude steel production in India is estimated to increase by 18%, to reach 120 million tonnes, driven by rising demand from customers. Production of finished steel stood at 92.82 MT. The consumption of finished steel stood at 86.3 MT.
Steel companies are looking to restart expansion projects on the back of burgeoning steel processes with a capacity addition of 29 MT. In FY22, demand for steel is expected to increase by 17% to 110 million tonnes, driven by rising construction activities. Tata Steel is planning to set up more scrap-based facilities that will have a capacity of at least a billion tonnes by 2025. India’s export rose by 121.6% YoY, compared with 2020. In FY21, India exported 9.49 MT of finished steel.
India’s per capita consumption of steel grew at a CAGR of 4.43% from 46 kgs in FY08 to 74.10 kgs in FY19. Government has taken various steps to boost the sector including the introduction of National Steel Policy 2017 and allowing 100% Foreign Direct Investment (FDI) in the steel sector under the automatic route. According to the data released by Department for Promotion of Industry and Internal Trade (DPIIT), between April 2000-December 2021, Indian metallurgical industries attracted FDI inflows of US$ 16.1 billion. The Government’s National Steel Policy 2017 aims to increase the per capita steel consumption to 160 kgs by 2030-31.
Contributed by @Sangita Mishra (Feb 2022)
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