The Indian steel industry is poised for significant growth in technological investments, with funding for process and digital innovations expected to rise from between USD 1 billion and USD 1.2 billion in 2024 to an estimated USD 2.3 billion to USD 2.7 billion by 2030, according to a report by FICCI and Deloitte titled ‘Automation, Digitalisation and Technology Integration for the Indian Mining and Steel Sector.’
This report outlines India’s ambitious goals to expand its crude steel production capacity to 300 million tonnes by 2030 and 500 million tonnes by 2047. This expansion is anticipated to be fueled by increasing consumption across various end-user industries, bolstered by governmental investments and ongoing urbanization efforts.
The steel sector plays a vital role in India’s economy, contributing approximately 2% to the country’s Gross Domestic Product (GDP). It directly employs around 600,000 individuals and supports an additional 2 million jobs indirectly. Looking ahead, per capita steel consumption in India is projected to rise to 160 kilograms by 2030 and approximately 220 kilograms by 2047.
The report highlights the significant potential for digital technologies to enhance compliance with environmental regulations, boost energy efficiency, and improve emissions monitoring within the sector. During the conference on ‘Automation, Digitalization & Technology Integration in Mining & Steel: Driving the Next Era of Growth,’ which was organized by FICCI in partnership with the Ministry of Steel, key industry figures shared their insights.
Amarendu Prakash, the Chair of the FICCI Steel Committee and Chairman of Steel Authority of India (SAIL), emphasized the critical role of change management in embracing digital transformation. He noted that it is essential for individuals within the industry to view automation and digitalization as enablers rather than as replacements for existing roles.
Amitava Mukherjee, Chair of the FICCI Mining Committee and CMD (Additional Charge) at NMDC Ltd, underscored that the integration of digital technologies with traditional industrial practices is not just a passing trend but a crucial necessity for future progress. He highlighted that automation, digitization, and technological integration have become foundational elements for the continued evolution of these sectors.
Gajraj Singh Rathore, Co-Chair of the FICCI Steel Committee and Whole Time Director & COO at JSW Steel Ltd, pointed out that collaboration will be essential for achieving success in this transformative era. He stressed the importance of fostering a culture of innovation, embracing technological advancements, and building strong partnerships to collectively create a resilient, prosperous, and sustainable future for the industry.
Rajib Maitra, Partner at Deloitte India, commented on the sector’s ongoing transformation driven by advancements in artificial intelligence and digital technologies. He acknowledged the practical challenges faced by operators, such as integrating new technologies with existing legacy systems and managing the associated costs of technological upgrades.
