India's path to becoming a global steel production leader is set, with ambitious targets to reach 300 million metric tonnes (MT) of crude steel capacity by 2030 and 500 MT by 2047, as outlined in a comprehensive report by Deloitte India and the Indian Steel Association (ISA). The report was unveiled at the ISA Steel InfraBuild Summit 2024, under the title ?ISA Steel InfraBuild Summit 2024 - Economical, Greener, and Always Faster Steel: Shaping the Future.?
As the world's second-largest steel producer, India's steel industry is pivotal to its economic growth. In fiscal year 2024, domestic finished steel consumption surged to 136 MT, reflecting a remarkable year-on-year growth of over 14%. The construction and infrastructure sectors are the largest consumers, using approximately 94 MT.
Government initiatives and increasing urbanization have significantly supported the steel sector. India's per capita steel consumption in 2022-23 was recorded at 93.44 kg, indicating substantial growth potential compared to the global average. The report projects that by 2034, the finished steel consumption could range between 221 MT and 275 MT, depending on various scenarios. The optimistic scenario estimates consumption at 275 MT, driven by the construction, infrastructure, and automobile sectors.
Specific regional demands are expected to rise, with states like Maharashtra, Uttar Pradesh, and Gujarat leading due to their on-going industrial and infrastructure projects. Additionally, national initiatives such as the National Green Hydrogen Mission are likely to boost demand for specialty steels critical for hydrogen production and storage.
Policy initiatives such as the National Steel Policy, Production-Linked Incentive (PLI) schemes, and flagship programs like the Pradhan Mantri Awas Yojana (PMAY) have significantly fuelled the demand for steel. The future of India's steel industry looks robust, with strategic government actions and sectoral growth driving demand across the country, positioning India to strengthen its standing on the global industrial map. (Source: ET)
