{"id":29098,"date":"2024-09-06T19:18:53","date_gmt":"2024-09-06T13:48:53","guid":{"rendered":"https:\/\/www.nextias.com\/ca\/?p=29098"},"modified":"2025-06-23T13:47:00","modified_gmt":"2025-06-23T08:17:00","slug":"govt-sets-target-of-500-million-tonnes-steel-production-by-2034","status":"publish","type":"post","link":"https:\/\/www.nextias.com\/ca\/current-affairs\/06-09-2024\/govt-sets-target-of-500-million-tonnes-steel-production-by-2034","title":{"rendered":"Govt Sets Target of\u00a0 500 Million Tonnes Steel Production by 2034"},"content":{"rendered":"\n<p><strong>Syllabus: GS3\/ Economy<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Context<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The Union Minister of Commerce and Industry, during his address at the 5th edition of ISA Steel Conclave set a target of 500 mn tonnes of steel production by 2034.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Status of Steel Production in India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>India is the <strong>world\u2019s second-largest producer <\/strong>of crude steel, surpassing Japan in 2018.<\/li>\n\n\n\n<li><strong>In FY24,<\/strong> the production of crude steel and finished steel stood at <strong>143.6 MT<\/strong> and <strong>138.5 MT,<\/strong> respectively.<\/li>\n\n\n\n<li><strong>India\u2019s finished steel consumption<\/strong> stood at 119.17 MT in FY23 and 138.5 MT in FY24.\u200b<\/li>\n\n\n\n<li>In FY24, the exports and imports of finished steel stood at <strong>7.49 MT and 8.32 MT<\/strong>, respectively.<\/li>\n\n\n\n<li><strong>The per-capita consumption<\/strong> of steel stood at <strong>86.7 kgs<\/strong> in FY23.<\/li>\n<\/ul>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img data-dominant-color=\"d1d3d4\" data-has-transparency=\"false\" loading=\"lazy\" decoding=\"async\" width=\"462\" height=\"463\" src=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2024\/09\/finished-steel-export-and-import-jpg.webp\" alt=\"finished steel export and import\" class=\"not-transparent wp-image-29099\" style=\"--dominant-color: #d1d3d4; width:350px;height:auto\" srcset=\"https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2024\/09\/finished-steel-export-and-import-jpg.webp 462w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2024\/09\/finished-steel-export-and-import-300x300.webp 300w, https:\/\/wp-images.nextias.com\/cdn-cgi\/image\/format=auto\/ca\/uploads\/2024\/09\/finished-steel-export-and-import-150x150.webp 150w\" sizes=\"auto, (max-width: 462px) 100vw, 462px\" \/><\/figure>\n<\/div>\n\n\n<h2 class=\"wp-block-heading\"><strong>Potential of Steel Sector in India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Easy availability<\/strong> of low-cost manpower and presence of abundant iron ore reserves make India competitive in the global set up.\u200b\n<ul class=\"wp-block-list\">\n<li>India is home to <strong>fifth-highest reserves of iron<\/strong> ore in the world.\u200b<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>India surpassed China <\/strong>as the top developer of coal-based steel capacity in July 2023, according to the latest report from Global Energy Monitor (GEM).<\/li>\n\n\n\n<li><strong>Automobile Industry Growth:<\/strong> The automotive sector is a major consumer of steel.\n<ul class=\"wp-block-list\">\n<li>As India&#8217;s middle class expands and consumer purchasing power increases, there is a growing demand for automobiles, contributing to the demand for steel.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Urbanization:<\/strong> With a growing population and increasing urbanization, there is a rising demand for housing, commercial spaces, and urban infrastructure. This trend contributes to a sustained demand for steel in construction and real estate sectors.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Concerns for Steel Sector in India<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Raw Material Availability and Cost:<\/strong> The steel industry heavily depends on the availability and cost of raw materials such as iron ore and coking coal.\n<ul class=\"wp-block-list\">\n<li>India remains dependent on <strong>imports to meet 90% of its coking coal <\/strong>requirement.&nbsp;<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Global Competition:<\/strong> The steel industry is highly competitive and Indian steel manufacturers face stiff competition from international players.\n<ul class=\"wp-block-list\">\n<li>Dumping of steel products especially from <strong>China and Vietnam <\/strong>in the past had major impacts on the industry.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Infrastructure Bottlenecks: <\/strong>Inadequate transportation facilities, inefficient logistics, and power shortages, hinder the smooth operation of the steel industry. It also leads to increased production costs.<\/li>\n<\/ul>\n\n\n\n<p class=\"has-background\" style=\"background-color:#ebecf0\"><strong>Read more: <a href=\"https:\/\/www.nextias.com\/ca\/current-affairs\/21-06-2025\/steel-industry-in-india\" data-type=\"link\" data-id=\"https:\/\/www.nextias.com\/ca\/current-affairs\/21-06-2025\/steel-industry-in-india\">Steel Industry in India<\/a><\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Steps taken by Government<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>National Steel Policy 2017 (NSP 2017): <\/strong>India has set the targets of achieving the total crude steel capacity of <strong>300 MTPA (million tonnes per annum)<\/strong> and total crude steel demand\/production of 255 MTPA by 2030-31.&nbsp;<\/li>\n\n\n\n<li><strong>In 2019<\/strong>, the Government introduced<strong> Steel Scrap Recycling Policy<\/strong> with an aim to reduce imports.<\/li>\n\n\n\n<li><strong>Policy for providing preference to Domestically Manufactured Iron and Steel Products (DMI &amp; SP Policy)<\/strong> in government procurement which has resulted in import substitution of \u20b934,800 Crore approximately.<\/li>\n\n\n\n<li><strong>Brand India labeling: <\/strong>the Ministry of Steel has undertaken the initiative of Made in India branding of Steel produced in the country to differentiate Indian quality steel from the others.<\/li>\n\n\n\n<li><strong>In 2021, India and Russia signed an MoU<\/strong> to carry out R&amp;D in the steel sector and produce coking coal (used in steel making).<\/li>\n\n\n\n<li><strong>In 2021,<\/strong> took initiative to boost the steel sector through joint activities under the framework of <strong>India\u2013Japan Steel Dialogue.<\/strong><\/li>\n\n\n\n<li><strong>Productivity Linked Incentive Scheme (PLI) for steel:<\/strong> The Scheme was approved by the Government in 2021, with a financial outlay of \u20b9 <strong>6,322 crores.<\/strong>\n<ul class=\"wp-block-list\">\n<li><strong>Objective: <\/strong>To promote domestic manufacturing of<strong> &#8216;Specialty Steel&#8217;<\/strong> within the country by attracting capital investment, generate employment and promote technology up-gradation in the steel sector.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>The &#8220;Promotion of Research &amp; Development in Iron &amp; Steel Sector&#8221; scheme <\/strong>provides financial support to stakeholders for initiatives aimed at promoting environmental sustainability and reducing carbon emissions.<\/li>\n\n\n\n<li><strong>Government allowed 100% Foreign Direct Investment (FDI)<\/strong> in the steel sector under the automatic route.\n<ul class=\"wp-block-list\">\n<li>According to the data released by the Department for Promotion of Industry and Internal Trade (DPIIT), between April 2000-March 2024, Indian metallurgical industries attracted FDI inflows of <strong>US$ 17.51 billion.<\/strong><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Way Ahead<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li>There is a need for <strong>innovation in achieving low emissions, high productivity, and superior quality <\/strong>to position India as a leading global steel manufacturer.<\/li>\n\n\n\n<li><strong>The use of artificial intelligence (AI) <\/strong>is required to optimize production, minimize waste, and enhance efficiency throughout the value chain.&nbsp;<\/li>\n\n\n\n<li>Also there is a need for a level playing field for domestic industries and addressing the <strong>Carbon Border Adjustment Mechanism (CBAM)<\/strong> with steel industry leaders to promote sustainable manufacturing.<\/li>\n<\/ul>\n\n\n\n<p><strong>Source: TH<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Union Minister of Commerce and Industry, during his address at the 5th edition of ISA Steel Conclave set a target of 500 mn tonnes of steel production by 2034.<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-29098","post","type-post","status-publish","format-standard","hentry","category-current-affairs"],"acf":[],"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/29098","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/comments?post=29098"}],"version-history":[{"count":2,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/29098\/revisions"}],"predecessor-version":[{"id":45974,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/posts\/29098\/revisions\/45974"}],"wp:attachment":[{"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/media?parent=29098"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/categories?post=29098"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.nextias.com\/ca\/wp-json\/wp\/v2\/tags?post=29098"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}