India Ranked Second Largest Steel Producer in the World

Utkarsh Classes Last Updated 30-12-2023

India Ranked Second Largest Steel Producer in the World

Economy 3 min read

According to the government, India has become the world's second-largest steel producer, signifying remarkable progress in the steel industry. According to the Ministry of Steel, domestic steel production was around 90 million tonnes, with domestic steel consumption at 87 million tonnes. According to the report, the Production Linked Incentive Scheme increased investment in the steel sector. This year, a Memorandum of Understanding was inked with 27 companies covering 57 projects totalling over 29 crore rupees.

Statistics

India is the world's second-largest producer of crude steel, with 125.32 million tonnes (MT) of crude steel and 121.29 MT of completed steel production in FY23.
The steel sector in India has grown significantly over the last decade, with production increasing by 75% since 2008.
Steel consumption per capita in India was 86.7 kilograms in FY23.
India is the world's largest producer of sponge iron and the world's third-largest user of finished steel, after only China and the United States.

Status of steel production in India

Steel is an important sector of the Indian economy, accounting for 2% of the country's GDP in FY 21-22.
India manufactured 118 million tonnes (MT) of crude steel in 2021.
2022-23, India exported 72 million tonnes (MT) of finished steel while importing approximately 6 MT.
India will produce 435 million tonnes (mt) by 2050.

Government Initiative

National Steel Policy 2017
- The National Steel Policy (NSP) 2017 enshrines the Government's long-term aim for boosting the steel sector.

Production-linked Incentive (PLI) Scheme
- The government has approved a Specialty Steel Production-Linked Incentive (PLI) Scheme.
- It has been estimated that speciality steel production will reach 42 million tonnes by the end of 2026-27.
Steel Authority of India (SAIL)
- SAIL (Steel Authority of India) was established in 1973.
- The government body oversees India's main steel facilities, including Bhilai, Bokara, Rourkela, and Burnpur.
- This organization began overseeing Iron and Steel in 1976.

Steel Research and Technology Mission of India-SRTMI
- The Ministry of Steel is assisting in establishing an industry-driven Steel Research and Technology Mission of India (SRTMI).
- It intends to lead research and development efforts in the iron and steel industry.