ACCOUNT PROFILE

India expects steel output hike on domestic demand

Posted on 07 September 2021

The Indian government expects crude steel output to rise 18% on-year to 120 million tonnes in the fiscal year ending March 2022 (FY22). Demand and consumption are expected to clock 100mt each, says the steel ministry.

Production will rise on the back of strong domestic demand, Kallanish notes. “The government has announced an INR 100 crore ($13.38 million) national infrastructure pipeline (NIP),” says steel minister Faggan Singh Kulaste. “Under the plan, various projects will be implemented across the country where steel will be used in huge quantities.”

Various infrastructure projects including Pradhan Mantri Awas Yojana (Prime Minister housing project), Bharatmala (roadways and highways project), Sagarmala (ocean logistics project), and dedicated freight corridors are underway to boost steel demand.

The nation’s crude steel output fell 6.1% on-year to 102mt in FY21 owing to Covid-19 lockdowns, but it ascended during the first two fiscal quarters of FY22. “India's production of crude steel was at 37.527mt, a growth of 44.6%, in April-July 2021. This gives me confidence that we will produce around 115-120mt in FY2021-22,” Kulaste adds.

The government aims to procure raw materials domestically and reduce import dependency gradually. “The government has also taken various measures to promote locally manufactured steel and reduce the country's dependence on imports for sourcing raw materials,” the minister concludes.

The government’s drafted and approved Domestically Manufactured Iron & Steel Products (DMI&SP) Policy mandates to provide preference to domestically manufactured iron and steel products in government procurement.

Source : Kallanish