The steel industry is one of the core industries of India and the nation wants to become completely self-reliant by 2030. India has strived for continuous modernisation of and up-gradation of steel plants to reach higher energy efficiency levels. In FY21, the production of crude steel and finished steel was 102.49 MT and 94.66 MT, respectively. As per the CARE Ratings, crude steel production is expected to reach 112-114 MT (million tonnes) in FY22, which is an increase of 8-9% YoY.  The Indian government has taken various initiatives for the development of the steel industry, such as, promoting an environment-friendly steel industry, expanding the domestic capacity of steel plants, greenfield capacity, setting up value-added steel clusters, etc. The Covid 19 pandemic eroded the demand for steel due to less consumer demand and some players were seen highly depending on export for steel.

 

The industry needs a revival strategy in place to overcome the losses led by the pandemic. The construction, automobiles, railways, and consumer durables sectors have a direct impact on the steel industry. The construction industry accounts for the largest consumption of steel. With affordable housing schemes, commercial and industrial construction will further give a push to steel demand in India.