"Given the progress we have made so far, we are confident that by the end of FY 2029, we will achieve a total investment of INR 29,500 crore and an augmentation of production capacity by 25 million tonnes," Nagendra Nath Sinha, Secretary, Ministry of Steel, told ET.
The Centre inked as many as 57 Memorandums of Understanding (MOUs) with companies entailing INR 14,600 crore of investment as of March 2024 which has led to the additional production capacity of 3 lakh tonnes, under the ambitious production-linked incentive scheme (PLI).
Last year, Prime Minister Narendra Modi-led government approved PLI scheme across 14 key sectors including speciality steel segment, with an outlay of INR 1.97 lakh crore to facilitate country's manufacturing capabilities and exports.
"As India aspires to become a USD 10 trillion economy and realises the vision of Viksit Bharat, or developed India, steel will undoubtedly play a pivotal role." Sinha said, adding that steel remains an integral part for a multitude of sectors.
Steel production, according to him, not only supports domestic industries but also enhances India's export capabilities, contributing to a favorable trade balance.
Crisil, a marketing research and ratings firm in a recent finding said that the country's steel consumption grew 13.6% in FY24, reaching 136 million tonnes (mt).
Infrastructure, construction and automobiles are the top steel consuming sectors, and the latter contributes nearly 14% to the manufacturing GDP and 2% to the country’s gross domestic product or GDP.
The construction sector, according to experts, contributes to 38% of India's steel demand while infrastructure accounts for 29% of India's steel demand of 67 mnt by 2030, with roads, highways, and metros making up 50-60% of this demand.
The sector, according to Sinha, employs more than 6 lakh people directly, and over 20 lakh people indirectly.
"By fostering a robust steel industry through initiatives like the PLI scheme, we are not just building the physical framework of a developed nation but also creating jobs, spurring technological innovation, and paving the way for economic resilience."
The National Steel Policy 2017 envisages a production capacity of 300 mt, and seeks to increase per capita steel consumption to the level of 160 kilograms by 2030.
In order to achieve its 2025 economic growth target of USD 5 trillion, the Modi government is investing in infrastructure through the National Infrastructure Pipeline (NIP), particularly in highways and expressways, rail network augmentation, freight line de-congestion, ports and water-ways.
The budgetary outlay for infrastructure-related ministries increased from INR 3.7 lakh crore in FY23 to INR 5 lakh crore in FY24.
Nearly INR 70 lakh crore worth of developmental projects are currently at various stages of implementation, as per the India Investment Grid (IIG) statistics.
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