Contribution of the Steel industry to the National GDP and its implications to the overall development in India
Feb-18-2018 Post / contribution-of-the-steel-industry-to-the-national-gdp-and-its-implications-to-the-overall-development-in-india
Contribution of the Steel industry to the National GDP and its implications to the overall development in IndiaSteel Industry
The development of the 21st Century’s current material civilization owes a huge chunk of its roots to humankind’s vast knowledge and application of metallurgy. All the primary sectors that we depend on, on a daily basis, would’ve essentially been impossible without metals. From infrastructure to transportation, our lives revolve around metals. From the spoons and forks to the International Space Station, metals are a part of our life to the point that their significance cannot be overlooked. Widely recognized as one of the fundamental element of all these metallic inventions, innovations and development, is this particular alloy of the iron, ‘STEEL’. Steel’s physical and chemical properties as a material are so versatile that it is used in some way or the other, for every developed sector so far.
As the world’s 3rd largest producer of steel, India has humongous scope for developing its mining reserves for iron ore. Indian Steel sector’s contribution to the overall Gross Domestic Product (GDP) of the country is above 2% during 2018. The total exposure of steel industry is about Rs. 3.13 lakh crore rupees. Crude steel production was recorded to be 75.498MT during April-December 2017 that grew by 4.6% Y-O-Y. India’s finished steel exports rose 102.1 percent to 8.24 MT, while imports fell by 36.6 percent to 7.42 MT in 2016-17. Finished steel exports rose 52.9 percent in April-December 2017 to 7.606 MT, while imports increased 10.9 percent to 6.096 MT during the same period. Total consumption of finished steel grew by 5.2 percent year-on-year at 64.867 MT during April-December 2017. According to the data released by Department of Industrial Policy and Promotion (DIPP), the Indian metallurgical industries attracted Foreign Direct Investments (FDI) to the tune of US$ 10.419 billion in the period April 2000–September 2017. A large number of these industries are directly and indirectly related to steel.
In the wake of the recent Budget for 2018, the Government of India has focused on infrastructure and restarting road projects to aid the boost in the demand for steel domestically. The Union Cabinet had approved the National Steel Policy (NSP) in 2017, as it seeks to create a globally competitive steel industry in India. The policy targets achieving 160 kgs per capita steel consumption along with 300 million tonnes (MT) steel-making capacity by 2030. Our Government is also working on initiatives like Metal Scrap Trade Corporation (MSTC) Limited the Ministry of Steel have jointly launched an e-platform called 'MSTC Metal Mandi' under the 'Digital India' initiative that will be able to facilitate the sale of finished and semi-finished steel products. The Ministry of Steel is facilitating setting up of an industry driven Steel Research and Technology Mission of India (SRTMI) in association with the public and private sector steel companies to spearhead research and development activities in the iron and steel industry at an initial corpus of Rs 200 crore (US$ 30 million).
With the Steel Industry of India accounting to up to 2% of the GDP, the importance of steel in our economy is irreplaceable. It employs millions of people throughout the country, both directly and indirectly. The potential of this industry is considered by the market experts to be boosted in the upcoming years, as the demand for steel keeps rising. Due to a wide array of features that find their application in so many sectors, steel will continue to be one of the most widely used material for years to follow. With our Government promoting domestic steel usage, the future of the steel industry of India seems bright. Agni Steels is proud to be a part of the journey towards a developed steel industry in India.