New Delhi: India has been acknowledged as the premier global catalyst for the growth in steel demand since the year 2021, as announced by the Ministry of Steel on Friday.
The ministry underscored that, as per the World Steel Forecast, the global steel demand is anticipated to experience a 1.7 percent increase this year, culminating in a total of 1,793 metric tons. Furthermore, it projected a further growth of 1.2 percent in steel demand by 2025, reaching a total of 1,815 metric tons.
"The World Steel Forecast indicates that this year, steel demand is poised to see a 1.7 percent increase to reach 1,793 Mt. Steel demand is forecast to expand by 1.2 percent in 2025 to reach 1,815 Mt. India has emerged as the most significant driver of steel demand growth since 2021," the ministry declared.
Additionally, the ministry highlighted that India's steel demand is expected to maintain its upward trajectory, with an anticipated 8 percent growth over the years 2024 and 2025. This growth is primarily attributed to the ongoing expansion across various sectors that utilize steel, notably due to sustained investments in infrastructure projects.
The steel sector's performance in the first quarter of the fiscal year 2025 has established a new standard, surpassing the previous records for this period in any fiscal year. In the first quarter of the fiscal year 2025, crude steel production reached 36.61 million tonnes, finished steel production amounted to 35.77 million tonnes, and finished steel consumption reached 35.42 million tonnes.
The Ministry of Steel emphasized that the steel sector plays a crucial role in essential industries such as construction, infrastructure, automotive, engineering, and defense. Over the years, the steel industry has experienced significant growth, with India ascending to become a major global producer of steel.
India is recognized as the world's second-largest producer of steel. The ministry stated that this growth underscores India's pivotal role in shaping global steel markets and contributing to industrial advancements worldwide.
The per capita consumption of steel in India has doubled from 59 kg in the fiscal year 2013-14 to 119 kg in the fiscal year 2022-23. In the fiscal year 2023, India produced 140.2 million tons of steel, securing its position as the world's second-largest steel producer.
Looking forward, the ministry stated that the National Steel Policy (NSP) envisages substantial expansion in the sector. By the fiscal year 2030-31, India is projected to achieve a total crude steel capacity of 300 million tons, with crude steel production expected to reach 255 million tons and finished steel production anticipated to stand at 230 million tons.
