The Indian government forecasts steel smelting at 128.6 million tonnes by 2021 and domestic steel consumption growth of 140 million tonnes by 2023, amid investments in infrastructure, construction and the automotive industries, says a review presented by Finance Minister Nirmala Sitharaman in parliament on Thursday.
India's steel production in 2018-1919 was 106.56 million tonnes, up 3.3 percent from 103.13 million tonnes in 2017-18. Currently, per capita steel consumption in India is only 69 kg, up from a global average of 214 kg.
In line with the 2017 National Steel Policy, the Indian government is seeking to increase capacity for steel production up to 300 million tons, production itself - up to 255 tons and steel consumption - up to 160 kg per person by 2030.
The survey says the policy provides broad policy directives to encourage long-term industry support, spurring long-term growth in Indian steel in both demand and production.
The survey states that India's steel sector faced a number of challenges in 2018-19, such as dependence on imported coking coal and imports of high quality steel.
In the global scenario, as noted in the survey, in 2018-19, there was a weakening of fundamental indicators of the steel market and an increase in trade friction with the introduction of protectionist measures by the United States and China, among other issues.
According to government estimates, the metals sector directly contributes 1.4-2 percent to India's GDP, and weighs 7.22 percent in the official industrial production index and 7.53 percent in the wholesale price index.
India is the second largest producer of raw steel in the world after China and the third largest consumer of finished steel after China and the United States.
