The steel sector in India contributes nearly two per cent to the nation’s gross domestic product (GDP) and is valued at over $ 100 bilion despite witnessing a downturn. India is currently the third largest steel manufacturer in the world producing over 100 MT annually. In a major boost to the sector, the government unveiled the National Steel Policy 2017 recently wherein it has set an output target of 300 MT by 2030 entailing an additional investment of around Rs 10 lakh crore. The policy envisages propelling the per capita consumption to 160 kgs by 2030 from 61 kgs currently against a global average of 204 kgs. With imports rising to over 11 MT in 2015-16 mainly from China, Japan and South Korea, the industry witnessed capacity cuts, squeezed margins and led to a slow-down. In order to shore up the situation, the Government imposed series of fiscal barriers beginning last year to contain the problem. This resulted in imports sliding by23% in April 2017to 0.504 MT over the corresponding month a year-ago, while exports surged by 142% in April 2017 (0.747 MT).
CII's sustained campaign for a stronger and vibrant steel industry received a major boost when the government endorsed its recommendation for curbing cheaper imports. Acting on CII's suggestion, the government last month brought out a separate policy for domestically produced iron and steel products. Under this purchase preference for locally produced steel has been mandated for major state-funded projects. Secondly, CII in another crucial recommendation had suggested amending the existing mining act to pave the way for a national e-auction platform for iron ore. The New Steel Policy envisages that the Steel and Mines Ministries would jointly facilitate creation of a uniform nationwide platform for bringing transparency and predictability in the process of sale of iron ore. CII has identified steel as a champion manufacturing sector as part of its study on Champion Manufacturing Industries 2025 submitted to the Hon’ble Prime Minister. The study highlights specific industries in which India can be a world leader in by 2025 and spells out a host of recommendations which will, in our view, support in realization of our potential and our aspiration both for steel as well as for manufacturing.
The steel sector in India contributes nearly two per cent to the nation’s gross domestic product (GDP) and is valued at over $ 100 bilion despite witnessing a downturn. India is currently the third largest steel manufacturer in the world producing over 100 MT annually. In a major boost to the sector, the government unveiled the National Steel Policy 2017 recently wherein it has set an output target of 300 MT by 2030 entailing an additional investment of around Rs 10 lakh crore. The policy envisages propelling the per capita consumption to 160 kgs by 2030 from 61 kgs ...