SECTORS AT THE INDIA PAVILION

Steel And Metals

INDIA UNEARTHED
India Is The World’s Second-Largest Producer Of Steel.

India produces 111.2 million tons of steel annually.

India’s crude steel production increased to 108.5 million tons in FY20.

India's steel industry requires 2.4 million skilled professionals by FY29 to meet the growing needs.

India is the 5th largest producer of aluminium in the world.

100% FDI is allowed through the automatic route in the steel and mining sectors.

US$ 2.8 billion have been invested as FDI in this sector between April 2000 and June 2020.

India’s enormous capacity for steel production couples with its voracious appetite for the same. India’s crude steel production increased to 108.5 million tons in FY20. The per-capita consumption of steel has increased from 57.6 kgs to 74.1 kgs over the last five years. By 2030 domestic steel production capacity is expected to reach 300 million tons.

The Indian iron and steel industry is expected to register exponential growth in the future, riding on a projected growth wave of infrastructure and real estate sectors.

The automotive sector’s growth in India has also driven the steady demand for steel and aluminum.

The industry will need an additional 2.4 million skilled professionals and workers by FY29 to meet the growing needs. Export and import of finished steel stood at 8.24 MT and 6.69 MT, respectively, in FY20.

The Metals and Mining sector in India is expected to undergo major reforms in the next few years. Make in India Campaign, Smart Cities, Rural Electrification and a focus on building renewable energy projects under the National Electricity Policy and the rise in infrastructure development are some of the reforms to be brought to the sector.

India is the fifth largest producer of aluminium in the world and holds a massive quantity of bauxite reserves of about 3 billion tons. The country has a capacity to produce more than 2.7 million tons of aluminium per year. Production potential was projected to be about 10 million tonnes by 2020.

(HINDALCO) National Aluminium Company (NALCO), Bharat Aluminium Company (BALCO) are among the largest firms in the Indian aluminium industry. Being the third largest producer of zinc in the world, India’s zinc ore resources are estimated at 385 million tonnes. In 2019, India exported zinc and its products worth over US$ 600 million. In that same year, the volume of primary zinc that was exported from India was around 400 thousand metric tons.

Binani Industries and Hindustan Zinc Limited (recently transferred on a strategic sale to Sterlite Industries) are the two largest players in the industry.

Millions of years of weathering and natural gravity segregation have enriched heavy metals including Rare Earth Elements (REEs) into the Indian Ocean’s coastline. Almost the entire coastline of the Indian Ocean is enriched in “mineral sands” which contain industrial minerals used in high-performance alloys, paint, abrasive, filtration, sandblasting etc.

Incorporated in 1950 under the joint ownership of Travancore and the Government of India. Indian Rare Earth Limited (IREL), is engaged in the mining and processing of mineral sands containing titanium, zirconium, thorium, and others. The IREL produces six heavy minerals namely ilmenite, rutile, zircon, monazite, sillimanite, and garnet as well as various value added products.

Recognizing the crucial role played by the metals and mining Industry in India’s growth, both public and private stakeholders are taking strident steps to fortify the industry:

  • The National Steel Policy (NSP) 2017, was approved by the government with the intent of creating a globally competitive steel industry in India. NSP 2017 has envisaged a steel-making capacity of 300 million tons and 160 kg per capita steel consumption by 2030–31.
  • 100% FDI is allowed through the automatic route in the steel and mining sectors.
  • US$ 2.8 billion have been invested as FDI in the sector between April 2000 and June 2020.
  • The Indian metallurgical industries attracted Foreign Direct Investment (FDI) of US$ 13.40 billion between April 2000 and March 2020.
  • The Ministry of Steel plans to invest US$ 70 million in the eastern region of the country through the accelerated development of the sector.
  • Steel Authority of India Limited (SAIL) is expected to increase its production capacity from 13 Million Tons Per Annum to 50 MTPA in 2025, pouring a total investment of US$ 24.88 billion.
  • Fortum eNext, part of Finnish clean energy firm Fortum, completed its first commercial combustion modification project in India at Hindalco-Mahan Aluminium, to cut NOx emissions on 150-MW boilers.
  • In December 2019, Arcelor Mittal completed the acquisition of Essar Steel at US$ 6.01 billion and formed a joint venture with Nippon Steel Corporation.
  • Tata Steel has decided to increase the capacity of its Kalinganagar integrated steel plant from 3 million tons to 8 million tons at an investment of US$ 3.64 billion.
  • IREL is in the process of setting up a plant producing Rare Earth Permanent Magnet (REPM) at Visakhapatnam based on Indigenous Technology and a seawater desalination plant with a capacity of 5 million litres a day.
  • Metallurgist Rambhau Tupkary has devised and patented a revolutionary method in the process of steel-making. Using this technology, steel companies would now be able to save US$ 1-2 million per million ton of steel production.

Propelled by a rising demand, strong forward and backward linkages and rapid expansion of sectors like construction and automobiles, the metals and mining sector is destined to play a pivotal role in India’s growth story and capture the global markets.