India's stainless steel consumption grows at 4.36% CAGR over 5 years - Minister of State for Steel

Union Minister of State for Steel and Heavy Industries, Bhupathiraju Srinivasa Varma, in a written reply to the Lok Sabha on 30 July, 2024, informed that the consumption of finished stainless steel in India has shown a Compound Annual Growth Rate (CAGR) of 4.36% over the past five years. Steel production decisions are deregulated and made by individual producers based on market demand and commercial factors. The data reflects a growth trend in stainless steel consumption over the specified period.

Govt initiatives for steel sector

Since 2014, no subsidies have been provided to the steel sector due to its deregulated nature. However, to foster a supportive policy environment and advance the 'Make in India' initiative, the government has introduced several key measures:

Domestically Manufactured Iron & Steel Products (DMI&SP) policy

The government has implemented the DMI&SP Policy to encourage the use of domestically produced steel in government procurement, thus promoting 'Made in India' steel.

Production Linked Incentive (PLI) scheme for specialty steel

The Government launched the PLI scheme to boost the production of specialty steel in the country, aiming to reduce imports and attract capital investments. The scheme is expected to generate an additional investment of INR 29,500 crore and create around 25 million tonnes (mnt) of additional specialty steel capacity.

Make in India initiative, PM Gati-Shakti National Master Plan

The Make in India initiative and the PM Gati-Shakti National Master Plan focus on increasing steel usage across various sectors, including railways, defence, petroleum and natural gas, housing, civil aviation, road transport and highways, agriculture, and rural development. These efforts are intended to enhance overall steel demand and drive investment in the steel sector.

Raw material coordination

The government is working with ministries, states, and other countries to improve the availability of raw materials for steel production on more favourable terms.

Steel Scrap Recycling Policy

The Steel Scrap Recycling Policy has been notified to increase the availability of domestically generated scrap, supporting the recycling industry.

Steel Quality Control Orders

A total of 145 Steel Quality Control Orders have been issued to prevent the manufacture and import of non-standardised steel, ensuring that quality steel products are available to consumers.