India’s Steel Minister, Jyotiraditya M Scindia, recently highlighted India’s booming steel sector and its rapid growth at the FICCI India Steel 2023 exhibition and conference. The industry’s success is attributed to government-industry collaboration, national infrastructure strengthening, green steel production focus, and new technology adoption.
The Hon’ble Minister of Civil Aviation and Steel, Jyotiraditya M. Scindia, recently spoke at the Ministry of Steel, Ministry of Commerce, Government of India, and FICCI’s exhibition and conference – India Steel 2023, where he highlighted India’s rapid growth in the steel industry. The minister disclosed that India’s steel production has grown by 6% CAGR in the last decade. Experts anticipate an 11-12% increase in the coming years.
India ranks second in global steel production, with per capita consumption rising from 57kg to 78kg over nine years. Scindia said it shows the country’s mandate to boost manufacturing and raise the steel industry’s GDP share from 2% to 5%. Furthermore, the minister attributed the sector’s growth to four key factors. These include government-industry collaboration, strengthening of national infrastructure, focus on green steel production, and adoption of new technologies. Recently, the government signed 57 MoUs with 27 companies under the Production Linked Incentive (PLI) Scheme for speciality steel. Moreover, this move is expected to generate an investment of about Rs. 30,000 Crores, create an additional capacity of 25 Million Tonnes of speciality steel within the next five years, and provide over 60,000 job opportunities.
Government’s push towards green steel production and circular economy at FICCI India Steel 2023
At FICCI India Steel 2023, the minister also stressed the government’s commitment to producing green steel and reducing the sector’s carbon footprint. He highlighted the need for recycling and promoting the circular economy within the industry. The government has formed two Advisory Committees. Moreover, one is for Integrated Steel Producers, and the other is for Secondary Steel Producers, to ensure stakeholder participation in decision-making.
Union Minister of State for Steel and Rural Development, Faggan Singh Kulaste, addressed the conference. He urged industry professionals to use domestic low-grade iron ore for steel production, generating jobs and boosting the economy. He emphasised bridging the consumption gap between urban and rural areas. Furthermore, he encouraged the secondary steel sector to adopt technology to enhance competitiveness and create more job opportunities.
The Indian steel industry has experienced a growth rate of 12.7% in the past year alone. However, it faces challenges such as decarbonisation and dependence on the import of coking coal. To address these challenges, Subhrakant Panda, President of FICCI, stressed the need for supportive policies and a conducive regulatory environment. “Decarbonisation is a crucial objective for the steel industry. Moreover, the public and private sectors collaborate to create a low-carbon emissions roadmap,” he emphasized, referring to their joint effort.
Overall, India’s steel industry is set to lead global growth as the nation emerges as an epicentre for the sector’s evolution. The sector’s growth is expected to fuel job creation and complement national infrastructure projects. Furthermore, the adoption of new technologies and a focus on green steel production will also help fast-track the sector.
