India Drives Global Steel Demand
02 Dec 2024
2 Min Read
CW Team
India remains the only major economy witnessing robust double-digit growth in steel consumption, registering a 13.5% increase in the first half of FY 2024-25, according to the Ministry of Steel. This strong demand aligns with India's infrastructural ambitions but raises challenges regarding domestic production and imports.
Key Insights on Steel Demand and Production
Projected Demand by 2030:
India will require 300 million tonnes of steel production capacity to meet an estimated 265 million tonnes of demand.
Current capacity stands at 180 million tonnes, necessitating an additional 120 million tonnes of capacity.
Investment needed: $120 billion (?10 lakh crore).
National Steel Policy Goal:
Achieve 300 million tonnes capacity by 2030 to avoid dependency on imports.
Challenges: Imports and Price Depression
Surging Imports:
41.3% increase in steel imports in H1 2024-25 (4.73 million tonnes vs. 3.32 million tonnes in H1 2023-24).
Cheaper imported steel threatens domestic price stability, impacting both large and small producers.
Domestic Production:
Of the 144.3 million tonnes of steel produced in FY 2023-24:
59.16% by integrated producers.
40.84% by over 1,002 small producers across clusters, highlighting their vulnerability to low-price imports.
Quality Assurance and Policy Measures
To ensure high standards, the Bureau of Indian Standards (BIS), in collaboration with the Ministry of Steel, has:
Notified 51 BIS Standards covering 1,376 grades of steel.
Introduced Quality Control Orders to ensure that domestically produced or imported steel adheres to these standards, preventing low-quality imports.
Outlook and Strategic Importance
India鈥檚 steel demand growth underscores its rapid development trajectory, driven by urbanization and infrastructure projects. However, for sustained growth:
Domestic capacity expansion must be prioritized.
Protective policies against price dumping are essential to safeguard small and large producers.
Continued quality assurance ensures global competitiveness.
India鈥檚 trajectory positions it as a critical player in global steel markets, balancing production, consumption, and import regulation.
India remains the only major economy witnessing robust double-digit growth in steel consumption, registering a 13.5% increase in the first half of FY 2024-25, according to the Ministry of Steel. This strong demand aligns with India's infrastructural ambitions but raises challenges regarding domestic production and imports.
Key Insights on Steel Demand and Production
Projected Demand by 2030:
India will require 300 million tonnes of steel production capacity to meet an estimated 265 million tonnes of demand.
Current capacity stands at 180 million tonnes, necessitating an additional 120 million tonnes of capacity.
Investment needed: $120 billion (?10 lakh crore).
National Steel Policy Goal:
Achieve 300 million tonnes capacity by 2030 to avoid dependency on imports.
Challenges: Imports and Price Depression
Surging Imports:
41.3% increase in steel imports in H1 2024-25 (4.73 million tonnes vs. 3.32 million tonnes in H1 2023-24).
Cheaper imported steel threatens domestic price stability, impacting both large and small producers.
Domestic Production:
Of the 144.3 million tonnes of steel produced in FY 2023-24:
59.16% by integrated producers.
40.84% by over 1,002 small producers across clusters, highlighting their vulnerability to low-price imports.
Quality Assurance and Policy Measures
To ensure high standards, the Bureau of Indian Standards (BIS), in collaboration with the Ministry of Steel, has:
Notified 51 BIS Standards covering 1,376 grades of steel.
Introduced Quality Control Orders to ensure that domestically produced or imported steel adheres to these standards, preventing low-quality imports.
Outlook and Strategic Importance
India鈥檚 steel demand growth underscores its rapid development trajectory, driven by urbanization and infrastructure projects. However, for sustained growth:
Domestic capacity expansion must be prioritized.
Protective policies against price dumping are essential to safeguard small and large producers.
Continued quality assurance ensures global competitiveness.
India鈥檚 trajectory positions it as a critical player in global steel markets, balancing production, consumption, and import regulation.
Next Story
Mumbai-Ahmedabad Bullet Train Set to Launch by 2028
India鈥檚 first bullet train is set to revolutionize high-speed travel along the western corridor, with the Mumbai-Ahmedabad high-speed rail project aiming for a 2028 launch. This announcement marks a major milestone in India鈥檚 infrastructure goals, as it promises to reduce travel time between the two economic hubs from eight hours to just three.Spanning a planned 508-kilometre stretch, the corridor stands as a flagship example of Indo-Japanese collaboration in technology and engineering. Once operational, the train is expected to transform intercity mobility and place India among the select..
Next Story
Mumbai-Gandhinagar Train Service Enhances Passenger Capacity
The Mumbai Central鈥揋andhinagar Capital Vande Bharat Express has increased its passenger capacity by adding four additional AC chair car coaches to meet the growing commuter demand on one of India鈥檚 busiest business corridors. This upgrade, effective from 11 May, raised the train鈥檚 seating capacity from 1,128 to 1,440 passengers, allowing it to serve 936 more passengers daily in both directions. The increase was described as a practical measure to accommodate the surging demand on the busy Mumbai鈥揂hmedabad鈥揋andhinagar route, which regularly operates at over 150 percent seat occupancy...
Next Story
Delhi Plans 12 Sewage Plants to Clean Najafgarh Drain Efficiently
Delhi鈥檚 ambitious plan to improve the water quality of the Yamuna River has gained significant momentum as the Delhi Jal Board (DJB) has begun work on 12 new sewage treatment plants (STPs) aimed at reducing the volume of untreated sewage being discharged from the Najafgarh Drain.This initiative forms part of the ongoing efforts to clean the Yamuna and restore the river鈥檚 health, which has long been a critical environmental issue for the national capital. Given the alarming pollution levels in the Yamuna, experts and officials consider this project a vital step toward addressing the persist..
