Context
Steel production in India, driven by strong demand for government infrastructure projects, is projected to surpass 300 million tonnes (MT) by 2030.
About
- India currently ranks as the World’s 2nd Largest Producer of Crude Steel, surpassing Japan in 2018.
- Current metal demand remains strong with an infrastructure push from the government and expects a growth of about 10 percent.
- The steel industry stands as one of the largest giant pillars of India’s monetary and industrial framework.
Importance
- Growth: The steel industry contributes substantially to the country’s GDP and serves as a primary source of employment.
- Directly employing millions and supporting many more indirectly, it provides jobs across a range of skills, from high-tech engineering roles to manual labour.
- Infrastructure Development: The creation of bridges, highways, railways, and homes relies closely on steel because of its strength, sturdiness, and versatility.
- Industrial Expansion and Technological Advancements: India’s steel industry is characterised by its constant efforts to beautify production performance, lessen costs, and develop high-quality steel products.
- The industry additionally supports the growth of different high-tech sectors, which include vehicles, aerospace, and defense.
- Collaboration with international companions: India’s steel industry has a large presence in global trade, contributing to the country’s export sales.
- By taking part in international markets, India complements its economy and has an effect on and establishes itself as a key player in international steel manufacturing.
- Strategic Importance: Steel is critical for the manufacturing of defense equipment, infrastructure critical to national security, and emergency reaction capabilities.
Challenges
- Raw cloth availability: There is volatility within the supply and pricing of raw substances, especially iron ore and coal.
- The inefficiencies in logistics growth operational costs and affect the competitiveness of Indian steel producers inside the international market.
- Competition : India remained a net importer of steel during the first, second and third sectors of FY24 because of price differentials between international and domestic prices of finished steel.
- Environmental concerns: Steel manufacturing is energy-extensive and generates substantial greenhouse gas emissions
- India’s steel sector debts for 12% of India’s greenhouse gas emissions with an emission intensity of 2.5 tonnes of CO2 consistent with tonne of crude steel in comparison to the international average of 1.9 tonnes of CO2 in line with tonne of crude metal
Initiatives
- The Union Minister of Steel and Heavy Industries launched SIMS 2.0 portal, the upgraded Steel Import Monitoring System, to offer actionable intelligence to stakeholders for effective selection-making and strategic making plans.
- National Steel Policy 2017 (NSP 2017): India aims to achieve a crude steel capability of 300 MTPA and a crude steel call for/manufacturing of 255 MTPA by 2030-31.
- Productivity Linked Incentive (PLI) Scheme: 57 MoUs with 27 corporations were signed under the PLI Scheme.
- ‘Brand India’ Labeling: The Ministry of Steel is selling a “Made in India” brand for home steel.
- PM Gati Shakti National Plan: The Ministry of Steel has recognized 22 essential infrastructure gaps and is coordinating with other ministries (Road Transport and Highways, Railways, Ports, Shipping, and Waterways) to address them.
- The Union Budget for 2024-25 gives India’s steel industry several motives to cheer, along with import obligation cuts on numerous raw materials and oblique advantages from extended spending on infrastructure and low-priced housing.
Conclusion and Way Forward
- The steel industry in India demands coordinated efforts and strategic planning to triumph over. From raw material supply and environmental policies to global competition and technological advancements, addressing those troubles is essential for ensuring the world’s persevered grand sustainability.
- By embracing innovation, enhancing infrastructure, and navigating regulatory landscapes effectively, India’s steel industry can continue to play a vital role in the nation’s monetary and industrial development.
- Economic Survey 2023-24 highlighted green metal’s essential position amidst global climate challenges.
- Green metal will play a critical function in reshaping the future of the industry as the arena actions towards a low-carbon economy.
Source: The Hindu
UPSC Mains Practice Question
Q. Account for the present location of iron and steel industries away from the source of raw material, by giving examples. (2020)
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