India’s steel sector is poised for a significant investment surge, with plans to inject nearly Rs 30,000 crore and expand production capacity by 25 million tonnes over the next five years, according to Nagendra Nath Sinha, Secretary of the Ministry of Steel.
As of March 2024, the Centre has signed 57 Memorandums of Understanding (MOUs) worth Rs 14,600 crore, resulting in an additional 3 lakh tonnes of production capacity under the Production-Linked Incentive (PLI) scheme. This initiative, part of a broader Rs 1.97 lakh crore scheme approved by the Prime Minister’s office, aims to boost manufacturing and exports.
Steel production is vital for India’s aspirations to become a $10 trillion economy and a developed nation, supporting various industries and contributing to the country’s trade balance. Recent data from Crisil shows a 13.6% growth in steel consumption in FY24, reaching 136 million tonnes, driven primarily by infrastructure, construction, and automotive sectors.
The steel sector employs over 6 lakh people directly and more than 20 lakh indirectly. With the National Steel Policy 2017 targeting a production capacity of 300 million tonnes and a per capita consumption increase to 160 kilograms by 2030, the government’s investment in infrastructure, including highways, railways, and ports, is crucial for achieving its economic growth target of $5 trillion by 2025. The budget for infrastructure-related ministries has risen from Rs 3.7 lakh crore in FY23 to Rs 5 lakh crore in FY24, with nearly Rs 70 lakh crore worth of projects in various stages of implementation.
