Steel Sector

The steel sector is one of the core industries in the economy. India is the 3rd largest producer of Steel in the world.

  • The domestic production of total finished steel in 2016-17 has been 101.3 million tonnes as compared to 91 million tonnes in 2015-16.
  • In the backdrop of China’s recent economic slowdown, the global steel industry has faced major distress due to decline in global demand including China’s demand for steel.
  • In addition, excess capacity in steel production led to dumping of steel by China, South Korea and Ukraine into Indian markets at low prices.
  • In response to this, the Government in 2016, introduced a host of measures like raising Basic Customs Duty, imposition of Minimum Import Price (MIP) and anti-dumping duties in order to shield the domestic producers.
  • The Indian Government notified the Minimum Import Price of steel in February 2016 for a period of one year.

National Steel Policy 2017

The Union Cabinet on May 3, 2017 gave its approval for National Steel Policy (NSP) 2017.

Objectives of the Policy

  • The new Steel Policy enshrines long-term vision of the Government to give impetus to the steel sector.
  • It seeks to enhance domestic steel consumption and ensure high quality steel production and create a technologically advanced and globally competitive steel industry.
  • The policy projects crude steel capacity of 300 million tonnes (MT), production of 255 MT and a robust finished steel per capita consumption of 158 Kgs by 2030-31, as against the current consumption of 61 Kgs.
  • The policy also envisages to domestically meet the entire demand of high grade automotive steel, electrical steel, special steels and alloys for strategic applications and increase domestic availability of washed coking coal so as to reduce import dependence on coking coal from about 85% to around 65% by 2030-31.

Key Features of the NSP 2017

  • Create self-sufficiency in steel production by providing policy support & guidance to private manufacturers, MSME steel producers, CPSEs
  • Encourage adequate capacity additions
  • Development of globally competitive steel manufacturing capabilities,
  • Cost-efficient production
  • Domestic availability of iron ore, coking coal & natural gas.
  • Facilitating foreign investment
  • Asset acquisitions of raw materials
  • Enhancing the domestic steel demand

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