Building on a strong foundation, India’s steel sector witnessed a remarkable surge in both consumption and production during the 2023-24 fiscal year. Domestic finished steel consumption jumped a noteworthy 13% to reach 136 million tonnes, compared to 120 million tonnes in the previous year. This growth is attributed to a significant rise in demand from key sectors like automotive and infrastructure.
The automotive industry, experiencing a resurgence in FY24, particularly with the growing emphasis on electric vehicles, played a vital role in driving up steel consumption. Similarly, the infrastructure and construction sectors displayed resilience, fueled by investments primarily stemming from government-funded development projects.
Mirroring the consumption growth, crude steel production also witnessed a robust increase of 12.6%, reaching 143 million tonnes. This positive trend aligns perfectly with the ambitious goals outlined in the National Steel Policy. The policy aims to transform India into a steel powerhouse by boosting annual steel manufacturing capacity to 300 million tonnes and raising per capita steel consumption to 160 kg by 2030.
Data from SteelMint further strengthens the optimistic outlook for the Indian steel sector. The January-March quarter of FY24 saw finished steel consumption climb by 6% to 33 million tonnes compared to the same period last year. Crude steel production followed suit, registering a 12.1% increase to 37 million tonnes during the quarter.
These figures paint a promising picture for India’s steel industry, indicating its potential to achieve the ambitious targets set forth in the National Steel Policy. With sustained growth in key demand sectors and a focus on capacity expansion, the Indian steel sector is poised for a bright future.
