Forging Ahead: Strategic Initiatives for the Steel Sector

India has been on an ambitious path to boost its steel sector. The Steel sector is one of the key drivers for infrastructure development, which in turn creates employment opportunities and boosts economic growth and development. Earlier this year, Minister Shri Scindia highlighted some of the significant developments made by the Indian Steel Sector. He stated that India aims to put into place mechanisms to boost the country’s steel production from the 150 MPTA observed during FY23 to 300 MPTA by 2030. He further pointed out that India has become the second-largest producer of steel in the world, and over the last nine years, the country's per capita consumption has also increased significantly from 57kg to 78kg.

The government has introduced PLI schemes to promote the production of specialty steel in India. Under the PLI scheme, the government has already awarded 54 applications that were submitted by about 26 companies. The PLI scheme, which was approved in 2021, is expected to create additional capacity to the tune of 26 MPTA, with an investment of INR 30,000 crore and the generation of employment opportunities, for approximately 55,000 people.

In a further boost to the steel sector, the Indian Steel Association has signed an MoU with the government e-marketplace (GeM). The goal of this move is to give the MSMEs a leg up by allowing them to supply their products as well as make procurements via this online marketplace, thus simplifying the entire process and allowing the MSMEs to directly deal with the government bodies that are the principal consumers of steel products. This collaboration between the ISA and the GeM will help to enhance opportunities for the MSMEs in the steel sector, as it provides the enlisted members direct access to the buyers, regardless of their size. The ISA represents a substantial portion of the Indian steel industry, about 65%. Members include well-known companies like SAIL, TATA Steel, and JSW Steel. In addition to this, the GeM also plans to launch a government interface for financing in the coming months, to onboard various banks. This will help boost the sale and purchase of steel products on the GeM platform.

The government’s efforts to provide a boost to this sector are aimed at helping India evolve as one of the global manufacturing powerhouses and, in turn, help India on its path to emerge as one of the fastest-growing economies globally.