Steel Industry in India

Syllabus: GS3/Economy 

In News

Recently ,the Ministry of Steel has extended Bureau of Indian Standards (BIS) quality norms to steel inputs and imports, giving industry players less than one working day to comply. 

India’s Steel Sector 

• Steel has been a key driver of industrialization and is considered a foundation of economic development.
•  As both a raw material and intermediate product, its production and consumption reflect a nation’s growth. 
• In India, the steel industry is divided into three categories: major producers, main producers, and secondary producers.

Present Status 

• India is the world’s second largest crude steel producer after China with production of 144.3 million tonnes crude steel in FY 2023-24. 
• India was net importer of finished steel during 2023-24 with export of 7.49 million tonnes and import of 8.32 million tonnes.
• The steel sector is vital to India’s economy, contributing about 2% to GDP.

Steps 

• The Government of India has launched the Purvodaya programme which aims to accelerate the development of eastern India through the establishment of an integrated steel hub.
• The National Steel Policy, 2017 envisages 300 million tonnes of production capacity by 2030-31.
• In the Union Budget 2024-25, Basic Customs Duty (BCD) has been reduced from 2.5% to Nil on Ferro-Nickel and Molybdenum ores and concentrates which are raw materials for the steel industry.
  • BCD exemption on Ferrous Scrap and specified raw material for manufacture of CRGO steel has been continued upto 31.03.2026.
• Implementation of Domestically Manufactured Iron & Steel Products (DMI&SP) Policy for promoting ‘Made in India’ steel for Government procurement.
• Launching of the Production Linked Incentive (PLI) Scheme for Specialty Steel to promote the manufacturing of ‘Specialty Steel’ within the country and reduce imports by attracting capital investments. 
• Revamping of Steel Import Monitoring System (SIMS) 2.0 for more effective monitoring of imports to address the concerns of the domestic steel industry.
• Introduction of Steel Quality Control Order thereby banning sub-standard/ defective steel products in domestic market as well as imports to ensure the availability of quality steel to the industry, users and public at large. 

Challenges and Concerns 

• India’s steel industry is facing major challenges due to a surge in cheap Chinese exports, which have hurt both domestic prices and export competitiveness. 
•  Indian steelmakers warn that without protective measures like safeguard duties, India risks becoming a dumping ground for global steel surpluses.
• The lack of government support and abrupt implementation without adequate notice has drawn strong criticism from industry stakeholders.

Way Forward 

• The steel industry has emerged as a major focus area given the dependence of a diverse range of sectors on its output as India works to become a manufacturing powerhouse through policy initiatives like Make in India.
• Despite high Chinese exports, India remains a strong growth market. 
• India must proactively implement safeguard measures to reduce its reliance on imports and promote domestic steel production to ensure atmanirbharta and long-term competitiveness.

Source :TH

Read this in Hindi: भारत में इस्पात उद्योग