Investments in process and digital technologies within India’s steel value chain are expected to surge, potentially reaching up to USD 2.7 billion by 2030, as outlined in a recent report. These investments are anticipated to significantly enhance the technological capabilities of the sector, propelling advancements toward a more efficient and sustainable mining and steel industry, according to the joint report released by FICCI and Deloitte on Thursday.
The report, titled ‘Automation, Digitalisation and Technology Integration for the Indian Mining and Steel Sector,’ highlights that the projected investment in process and digital technologies across India’s steel value chain is set to rise dramatically from USD 1-1.2 billion in 2024 to a forecasted USD 2.3-2.7 billion by 2030. This estimate excludes upgrades to Enterprise Resource Planning (ERP) systems.
The year 2030 holds particular importance for India’s steel industry, as the National Steel Policy 2017 targets an ambitious increase in the country’s steel-making capacity to 300 million tonnes by this time. Furthermore, the report projects that per capita steel consumption in India is likely to grow substantially, reaching an estimated 160 kilograms by 2030 and potentially around 220 kilograms by 2047.
According to the report, digital tools have the potential to play a pivotal role in enhancing compliance with environmental regulations by improving energy efficiency and enabling more accurate emission monitoring. Moreover, digital technologies provide the necessary flexibility and scalability to respond to market dynamics, foster innovation, and enhance worker safety.
The integration of digital technologies throughout the value chain is increasingly recognized as a crucial factor in unlocking transformative capabilities. This integration is expected to significantly propel the sector toward enhanced sustainability, greater efficiency, and a future-ready trajectory that meets evolving industry demands.
Rajib Maitra, Partner at Deloitte India, commented, “The Indian mining and steel sector is undergoing a significant transformation, driven by innovations in artificial intelligence and digital technologies. However, operators on the ground face practical challenges, such as integrating new systems with existing legacy infrastructures and managing the costs associated with technological upgrades.”
Echoing this sentiment, Gajraj Singh Rathore, Co-Chair of the FICCI Steel Committee, emphasized the importance of fostering a culture of innovation, technology adoption, digitalisation, and strategic partnerships. He noted that by embracing these elements, stakeholders can collectively shape a resilient, prosperous, and sustainable future for the industry and the nation as a whole.
