February 4, 2019
The Indian steel sector has been driven by domestic availability of raw materials such as good quality iron ore and cost-effective labour
In 2018, India retained its position as the world’s third largest crude steel producer for the third year in a row owing to favourable factors
India has notified the National Steel Policy, 2017 and the Policy for Providing Preference to Domestically Manufactured Iron and Steel (DMI&SP)
The Government has issued quality control orders covering 47 carbon and alloy steel as well as six stainless steel products to aid the sector
India’s total crude steel production increased from 89 million tonnes (mt) during financial year 2014-15 to 103.1 mt during financial year 2017-18, as per an official announcement on February 4. Last year, the nation had retained its position as the world’s third largest crude steel producer for the third year in a row. The growth in the Indian steel sector has been driven by domestic availability of raw materials such as good quality iron ore and cost-effective labour. Consequently, the sector has been a major contributor to India’s manufacturing and industrial prowess. The steel industry has steadily striven for modernisation and upgradation of older plants and higher energy efficiency levels.
The Government has notified the National Steel Policy, 2017 and the Policy for Providing Preference to Domestically Manufactured Iron and Steel (DMI&SP) in the case of state procurement, creating a favorable environment to improve domestic production and consumption of steel. With a view to provide relief to the domestic steel industry, the Government of India has undertaken the following measures:
Government of India has also issued quality control orders, namely Steel and Steel Products (Quality Control) Order, 2018 covering 47 carbon and alloy steel as well as six stainless steel products. The order prohibits manufacturing and import of sub-standard and seconds and defective products. Last year, the Government had also sought to approve a plan to open up commercial coal mining sector to private investment. This liberalisation is the most ambitious coal sector reform since the nationalisation of the sector in 1973 and stands to benefit the steel industry. Strengthening of the steel industry is critical to help drive the nation’s economic growth – one of the fastest globally.
