Steel demand in India will hit 300 MT by 2030, supported by strong development and govt policies

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Steel demand in India will hit 300 MT by 2030, supported by strong development and govt policies

Ferrous 25 Jul 2024 12:55 PM IST Economic Times

India's path to becoming a global steel production hub is outlined in its ambitious targets of reaching 300 million metric tonnes (MT) of crude steel capacity by 2030 and 500 MT by 2047, According to a comprehensive report released by Deloitte India in collaboration with the Indian Steel Association. The report was presented at the ISA Steel InfraBuild Summit 2024 under the title 'ISA Steel InfraBuild Summit 2024 - Economical, greener, and always quicker steel: Shaping the Future'.

India is the second-largest steel manufacturer in the world, and as such, the country's economic expansion has a direct impact on the steel industry, which is experiencing a significant rise in demand.

Domestic finished steel consumption increased to 136 MT in fiscal year 2024, according to the data, representing a year-on-year gain of more than 14%. Construction and infrastructure sectors consume the most, requiring around 94 MT.

The steel industry has greatly benefited from government efforts and rising urbanisation. While far lower than the global average, India's per capita steel consumption for 2022–2023 was 93.44 kg, indicating great potential for expansion.

The report also includes forecasts for 2034, with final steel consumption ranging from 221 MT to 275 MT, depending on the scenario. The main drivers of consumption are the construction, infrastructure, and automotive sectors, which are estimated at 275 MT in the optimistic scenario.

Specific regional demands are expected to rise, with states like Maharashtra, Uttar Pradesh, and Gujarat leading due to their ongoing industrial and infrastructure projects. Additionally, national initiatives such as the National Green Hydrogen Mission will likely spur demand for speciality steels critical for hydrogen production and storage.

Policy initiatives such as the National Steel Policy, Production-Linked Incentive (PLI) schemes, and flagship schemes like the Pradhan Mantri Awas Yojana (PMAY) have significantly fueled the steel demand.

The future of India's steel industry looks robust. Strategic government actions and sectoral growth are driving demand across the country, setting the stage for India to strengthen its position on the global industrial map.

Also Read : Global steel output down 1.6% y/y in January; India reports 7.3% jump CBAM will increase the export value of Chinese steel products by 4-6%

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Steel demand in India will hit 300 MT by 2030, supported by strong development and govt policies

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