Indian Scenario of Iron & Steel Industry

With the consistent transformation of the facade of India, it is crucial to understand the general idea of the Indian scenario of the iron and steel industry. Ever-increasing and evolving infrastructure bring colossal changes to the economic side of nation-building which exponentially requires a strong presence of the iron and steel industry. The next 25 years will be very vital for India -as we will be marking 100 years of independence- in this course, it’s no surprise there will be a boost in infrastructure development. As of today, i.e. 2022, India is the world’s second-largest producer of steel. The growth in the Indian steel sector is driven by the domestic availability of raw materials and cost-effective labour, with continuous modernisation of older plants and up-gradation to higher energy efficiency levels.

As India becomes the genesis of the manufacturing hub, we learn about the reasons for such a revolutionary transformation. 

Competitive Advantage - 

The easy availability of low-cost labour and the presence of abundant iron ore makes India- fifth in the world ranking for its reserve.

Multiplying Investments - 

With the entering of new players, investment by entities from other sectors has increased. The ongoing consolidation opens an opportunity for global entities to enter the Indian market.

Consistent Demand - 

With a consumption of 133.56 MT in FY22, there is no stopping back from consumption and global output levels in the coming future.

In FY22, imports and exports of finished steel were at 13.49 MT and 4.67 MT, respectively. This is, similarly, translated into internal consumption level rise as well. The steel industry and its associated mining and metallurgy sectors have attracted major investments and developments. The government has taken imperative steps to boost the sector including the introduction of the National Steel Policy 2017 and allowing 100% Foreign Direct Investment (FDI). According to the Department for Promotion of Industry and Internal Trade (DPIIT), from April 2000-March 2022, Indian metallurgical industries attracted FDI inflows of US$ 17.01 billion which will continue to increase. In FY22, steel demand is expected to increase by 17% to slowly achieve industry-oriented goals for 100 years of independence.

The huge scope for growth is evident in the expected rise in consumption due to increased infrastructure construction and the thriving automobile and railways sectors. Currently, major iron ore reserves in states like Orissa, Chhattisgarh, Jharkhand, Karnataka & Maharashtra; have poured out significant output and the future for this comprehensive industry is surely bright.

We, at Kalika Steel, are proud to be an active element in massive synergies of iron, steel and associative sectors. We intend to remain in the vanguard of supplying the best quality of TMT steel products from our state-of-the-art facility, to build reliable structures of Indian pride. Multiplying success stories of modern-day Indian infrastructure. 