India’s economic and industrial growth has been nothing short of meteoric in recent years. Recently, Union Minister of Civil Aviation and Steel, Mr. Jyotiraditya Scindia, confirmed this upward trajectory, announcing that India has overtaken Japan to become the world’s second-largest manufacturer of crude steel. This announcement marks a significant milestone in India’s journey toward becoming an economic superpower, reflecting its growing influence on the global stage.
In his address, Minister Scindia underscored the critical role the steel sector plays in India’s growth and development. Not only is the industry a cornerstone of the country’s infrastructure development, but it also contributes significantly to its export revenue. Surpassing Japan in crude steel production in 2018, India’s steel industry has seen remarkable growth, spurred by strategic investments, government support, and a robust domestic demand.
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An important testament to the government’s successful policies in the steel sector is India’s transition from being a net importer to a net exporter of steel. In the 2022-23 fiscal year, India exported 6.72 MT of finished steel against an import of 6.02 MT. In stark contrast, in 2014-15, the country was importing 9.32 MT of steel compared to an export of 5.59 MT. This turnaround stands as an impressive testament to the resilience and competitiveness of India’s steel industry.
India’s public sector steel enterprises have also made significant contributions to this growth story. Between 2014-15 and 2022-23, steel public sector enterprises, including SAIL, NMDC, MOIL, KIOCL, MSTC, and MECON, spent ₹90,273.88 crores of their own resources on capital expenditure (CAPEX). During the same period, they paid dividends worth ₹21,204.18 crores to the Government of India.
Minister Scindia also highlighted the Steel Scrap Recycling Policy, which aims to promote the scientific processing and recycling of ferrous scrap. The launch of six vehicle scrapping centers in various cities, with three more in the pipeline, further supports this policy. These centers will recycle end-of-life vehicles (ELVs), providing a valuable source of raw material for the steel industry.
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The country’s steel sector goals set by the National Steel Policy (NSP) 2017 were another crucial point in Minister Scindia’s address. India has set ambitious targets, aiming for a total crude steel capacity of 300 MTPA and a total crude steel demand/production of 255 MTPA by 2030-31. SAIL’s operational capacity for crude steel production is also expected to increase from the current 19.51 MTPA to approximately 35.65 MTPA by 2030-31.
Currently, only China stands ahead of India in terms of steel production. However, with India’s robust growth and strategic policy framework, the gap between the two nations might continue to close. If India maintains its growth trajectory, it may soon compete with the Chinese steel industry’s supremacy, marking another significant milestone in India’s economic journey.
India’s ascendancy as the world’s second-largest steel producer is a testament to its economic potential, industrious spirit, and strategic vision. As India continues to forge ahead, its growth in the steel sector serves as an inspiring symbol of its broader economic development narrative.
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