Collaborative Push Needed to Achieve India's 500 MT Steel Production Target Joint Managing Director & CEO of JSW Group said that while government policies were helping the sector, certain concerns needed to be addressed to achieve the target of producing 500 million tons of steel by 2047.
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As India's steel demand is expected to grow substantially over the decade, there is a need for the private players and policymakers to join hands to achieve the goal of "zero imports and net exports" and economic development.
"The steel sector is crucial in achieving the 5 trillion-dollar economy goal. Under the 'National Steel Policy,' we have set a target to produce 300 million tons by 2030 and 500 million tons by 2047," said Prime Minister Narendra Modi at the FICCI-organized 'India Steel 2025' Expo.
Industry experts and policymakers said India is already on the path to achieving the target.
"India is on a transformative path, and steel is going to be a building block of this journey. The world needs to understand that India will build capacity for its demand, and this is where we stand out. We have a domestic market. That's a key differentiator," said Jayant Acharya, Joint Managing Director & CEO, JSW Group.
He said that while government policies were helping the sector, certain concerns needed to be addressed to achieve the target of producing 500 million tons of steel by 2047.
"We have ample iron ore resources, but ensuring a consistent supply is important. Raw material security is crucial to meet the growing demand," said Acharya.
He also said that historically, land acquisition in the country has been challenging. Fast execution of projects with clear timelines is crucial for controlling costs. Therefore, land reforms and supportive policies will be key to faster project execution. "Additionally, regulatory processes, especially environmental approvals, need to be expedited," added Acharya.
The growth in the sector till now, however, could not be discounted, experts said.
"Now India is very firmly in the second position of the second largest user and producer of steel on a global scale. This means that what happens here in India is important for the global steel industry. It is also indicative of India's status as a developing economy because the steel industry is a very enabling industry. The industry is the pillar on which economic development takes place," said Edwin Basson, Director General, World Steel Association.
Sandeep Poundrik, Secretary, Ministry of Steel, said India is the future in the steel manufacturing sector.
"Since 2018, India has been the second-largest producer of steel. But more importantly, if you see the consumption figures, over the last four years, we have grown at a double-digit percentage. We are perhaps the only growing economy in the world where steel consumption is growing by 10 per cent for four consecutive years," he said.
Poundrik also added that India will have to work more innovatively to ensure that steel manufacturing, a polluting endeavour, becomes an environment-friendly process. "We can't, however, take a one-size-fits-all approach. About 40-45% of our steel is produced by small industries. They also have to migrate to a better means of producing greener steel. That is another opportunity as well as a challenge," he said.
Chhattisgarh Commerce and Industries Minister Lakhan Lal Dewangan stated that Chhattisgarh is the steel capital of India and highlighted that the state holds 18 per cent of the country's iron ore reserves. He said the state, besides playing a "central role in achieving the country's target of producing 300 million tons of steel by 2030, was also a pioneer in adopting green technologies".
