Raising Steel Industry's GDP Contribution
The steel industry is one of the key sectors of India's manufacturing industry and a major employer, providing jobs to millions of people. The industry includes various segments, such as raw materials production, processing, manufacturing, and distribution of steel products. The steel industry has been growing steadily over the years, with a focus on improving efficiency and productivity.
?Significant growth over the last decade
India is the world's second-largest steel producer and contributes over 2% to the country's GDP. According to the Ministry of Steel, the crude steel production in India has increased from 75.28 million tonnes (MT) in 2010-11 to 111.24 MT in 2020-21, representing a growth of 47.76% over the decade. Whereas the domestic consumption of steel increased from 67.95 MT in 2010-11 to 101.03 MT in 2020-21, a growth of 48.60% over the decade. Moreover, India has become a net steel exporter over the last decade, with exports increasing from 4.27 MT in 2010-11 to 10.79 MT in 2020-21, a growth of 152.66% over the decade. Scrap production recorded an increase of 4.6% year-on-year.
?The steel industry has attracted significant investments over the last decade, with domestic and foreign companies investing in new projects and expanding existing facilities.
Government Initiatives
The Indian government is working to boost domestic demand for steel through initiatives such as the National Steel Policy (NSP) and the Metal Scrap Trading Company (MSTC) Ltd. The Ministry of Steel is also establishing an industry-focused Steel Research and Technology Mission to India (SRTMI) to spearhead research activities and development in the steel industry. Agni Steels is proud to be part of the development journey of the Indian steel industry.?
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The government has adopted reforms to stimulate the growth of the Indian steel industry, such as now 100% FDI allowed in the steel sector, Scrap Steel Recycling Policy (SSRP), and the Domestically Manufactured Iron & Steel Products (DMI&SP) Policy, to create a well-developed and highly skilled steel industry, increase steel consumption per capita, and reduce dependence on imports. The Production Linked Incentive (PLI) program for professional languages aims to boost India's specialized language manufacturing industry through capital investment, job creation and technological upgrading. The Steel and Steel Products (Quality Control) Ordinance was introduced to maintain quality control and assure consumers of quality steel products.
Moving towards Green Future
The Indian government has recognized the importance of green steel and reducing carbon emissions to combat climate change. The Indian steel industry can eliminate carbon emissions by 2050 by investing $278 billion and using green hydrogen and recycling technologies. This is due to rising steel demand, increased production and improved profitability. The automotive industry is expected to contribute to the demand for steel due to the growing demand for electric vehicles. The green push promises to make steel production cleaner and cheaper, allowing India to remain a net steel exporter. The outlook for the Indian steel industry is bright and is expected to boost the Indian economy.