Steel industry

Overview

As per last quarter, India was the second-largest producer of crude steel in the world, having
quarterly production of 9.4 MT. Indian crude steel and finished steel production reached a mark of
102.49 MT and 94.66 MT in the last financial year respectively. The production of Crude steel is
expected to reach 112-114 MT (million tonnes), an increase of 8-9% in next financial year as
predicted by CARE Ratings. The consumption of finished steel reached 93.43 MT in this financial
year.

The Government’s National Steel Policy 2017 aims to increase the per capita steel consumption to
160 kgs by next decade. The Government has also promoted policy which provides a minimum value
addition of 15% in notified steel products covered under preferential procurement.

In July 2021, the Union Cabinet of India, approved the production-linked incentive (PLI) scheme for
specialty steel to improve production of steel. The expectation from this scheme is to attract
investment of near worth about Rs. 400 billion (US$ 5.37 billion) and expand specialty steel capacity
by 25 million tonnes (MT), to 42 MT in FY27, from 18 MT in FY21.