The Union Minister for Steel noted in a recent Lok Sabha session that Indian steel companies, including public sector ones, have consistently boosted their capacities, production, sales, and exports over the years. This trend is evident in the growth recorded between 2014 and 2020.
Key Improvements
In 2019-20, India emerged as a net exporter of steel. Between April and August 2020, our country’s steel exports showed a significant increase of over 153% compared to the same period in the previous fiscal year. The capacity for domestic crude steel production expanded from 109.85 Million Tonnes Per Annum (MTPA) in 2014-15 to 142.29 MTPA in 2019-20. Crude steel production also rose from 88.98 MTPA in 2014-15 to 109.14 MTPA in 2019-20.
Skill Training and Government Initiatives
The improvement in the steel industry can be attributed to skill training programmes run by the Ministry of Steel and Central Public Sector Enterprises (CPSEs) like Steel Authority of India Ltd. (SAIL) and Rashtriya Ispat Nigam Ltd. (RINL). Moreover, CPSEs are actively working on reducing operational costs through technology, productivity enhancement, and procurement streamlining.
Challenges Faced by the Industry
Despite the progress, the iron and steel industry in India faces several challenges. It requires substantial capital investment, which might not be readily available in a developing country like ours. Also, low labour productivity and potential utilisation, and high demand lead to various difficulties. Finally, factors such as weak infrastructure and capital inputs affect the quality of steel products.
Government Initiatives to Support the Steel Industry
The government has launched several initiatives to bolster the steel industry. These include the National Steel Policy (NSP) 2017, the Steel Scrap Recycling Policy, and the Draft Framework Policy. The latter is aimed at encouraging the setting up of greenfield steel clusters and the development of existing ones. These clusters are expected to boost self-reliance in value-added steel and capital goods.
Adoption of Fourth Industrial Revolution (Industry 4.0)
The steel industry is expected to benefit from the Fourth Industrial Revolution, also known as Industry 4.0. This revolution promises to enhance manufacturing processes, material usage, energy efficiency, plant productivity, worker productivity, supply chain efficiencies, and product lifecycle management.
Steel Research and Technology Mission of India
Another initiative is the Steel Research and Technology Mission of India, which provides financial assistance to various institutions for research in the steel sector. This mission covers a range of topics, including waste utilisation, energy efficiency improvement, and reduction in greenhouse gas emissions.
The Road Ahead for the Steel Industry
Post-deregulation, the Indian steel industry has entered a new phase of development. It is buoyed by a resurgent economy and rising steel demand. The nation’s comparatively low per capita steel consumption coupled with escalating infrastructure construction and booming automobile and railways sectors indicates vast growth potential. The critical role of steel products in fostering a sustainable society and their significance for India’s prosperity is irrefutable.
