There is no doubt that the consumption of steel in India will swell up, because modern generations are seeking a better quality of life. The rate of steel consumption serves as an index of the quality of life in a nation.
That said; let’s look into some of the current trends and challenges of the Indian Steel Industry:
It is expected that the finished steel consumption in India will reach 230 MT (million tonne) by 2030, which is the current world average. Presently steel consumption in India is only about 60-90 MT. For the steel consumption to increase by such a large amount, it is necessary that the steel capacity is of the order of 300 MTPA. The fast-developing Indian Steel Industry is well-prepared to meet this high demand.
A significant portion of steel is consumed by the construction and housing sector. With the government rolling out new social sector schemes, such as the Urban Infrastructure Development Scheme for Small and Medium Towns (UIDSSMT), along with the development of industrial corridors, steel consumption in real estate will surely get a big boost.
Owing to consolidation of players in the Steel Industry, more investments are flowing into the sector, even from entities belonging to other sectors. The current consolidation also opens up an opportunity for global players to step into the Indian market.
As of 2018, our country was the second largest steel producer in the world. The availability of low-priced manpower and the rich iron ore reserves give the Indian Steel Industry an edge in the global landscape. Moreover, the implementation of National Steel Policy (NSP) in 2017 supports and pushes the industry to meet global benchmarks.
Steel companies of India have invested heavily in expanding existing units, modernizing the industry and developing green-field plants, thereby progressing towards an environment-friendly, a cost competitive, socially responsible and world-class industry.
Challenges faced by the industry:
Although there are clear signs that the steel industry is prospering, it is wise to bear in mind the challenges that has troubled the steel industry in the recent past. China is a nation with excess capacity in its steel sector, which the nation was tackling by pumping up exports. This deeply impacted countries like India, which are ‘’steel-non-mature’’ but are key centers of steel consumption. Confronted with the surge in imports, major Indian steel investors were worried about the returns their investments would fetch. The efficiency of primary as well as secondary steel plants was hampered. Thankfully, the government revised various duties and set minimum import prices, providing a level playing field for Indian steel enterprises.
Another persisting challenge is the regular supply of raw materials. The recent shutting of mines adds to the troubles of the steel industry. There are problems concerning the transport logistics in mining industry that need to be addressed to reduce the lag in evacuation of minerals.
Despite these challenges, the Indian Steel Industry is fully prepared to contribute to public cause and remain competitive. For more news on steel manufacturing and for top-quality steel products, get in touch with MSP Steel– a leading steel manufacturer in India.
READ ALSO OUR NEW UPDATES
- The Growth of Indian Steel Industry
- Use of Steel in the Automotive Industry
- 5 Construction Site Safety Tips to Ensure Workers Stay Safe and Healthy
- Properties and Interesting Facts about Steel
- Earthquake-Resistant Building Norms India
- Constructing Earthquake-resistant Structures in India: Know How
- Limit Construction Cost with These Amazing Tips