The Business Bytes
New Delhi, August 9, 2024 (TBB Bureau): India’s steel industry has experienced a remarkable surge, with crude steel production skyrocketing by over 35 million tonnes in the last four years. Production rose from 109.14 million tonnes in 2019-20 to an impressive 144.30 million tonnes in 2023-24, the government revealed in Parliament on Friday.
Minister of State for Steel and Heavy Industries Bhupathi Raju Srinivasa Varma highlighted India’s achievement in becoming the world’s second-largest steel producer in 2018, surpassing Japan — a rank the nation has successfully maintained ever since.
The minister attributed this growth to the government’s proactive role in fostering a supportive policy environment. Notable initiatives include the Domestically Manufactured Iron & Steel Products (DMI&SP) Policy, designed to boost the use of ‘Made in India’ steel in government procurement processes.
Further strengthening the sector, the government has introduced a Production Linked Incentive (PLI) Scheme aimed at promoting the domestic manufacturing of specialty steel. This initiative is expected to reduce imports by drawing capital investments and creating an additional capacity of around 25 million tonnes. The anticipated investment under this scheme is approximately Rs 29,500 crore.
To enhance the global competitiveness of Indian steel, the government has also reduced the basic customs duty on ferro nickel—a key raw material for steel production—from 2.5% to zero, effectively making it duty-free. Additionally, the duty exemption on ferrous scrap has been extended until March 31, 2026, as outlined in the Budget for 2024-25.
India’s push towards self-reliance is further supported by initiatives like the ‘Make in India’ campaign and the PM Gati Shakti National Master Plan. These programs are driving increased steel consumption across various sectors, including Railways, Defence, Petroleum and Natural Gas, Housing, Civil Aviation, Road Transport and Highways, Agriculture, and Rural Development.
Moreover, the government is actively coordinating with various Ministries, States, and international partners to ensure the availability of raw materials for steel production on favorable terms. The recent notification of the Steel Scrap Recycling Policy, aimed at enhancing the availability of domestically generated scrap, has also played a significant role in boosting production.
With these strategic measures in place, India’s steel industry is poised for continued growth, further solidifying its position on the global stage.
