Facts for Prelims (FFP)
Source: PIB
Context: India has emerged as the second-largest producer of crude steel globally, surpassing Japan and 2nd largest consumer of finished steel.
Status of steel production in India:
- In 2021, India produced 118 million tonnes (MT) of crude steel. By 2050, India will be producing 435 million tonnes (mt)
- Steel is a key sector for the Indian economy(responsible for 2% of the country’s GDP in FY 21-22).
- In the year 2022-23, India witnessed the export of 72 million tonnes (MT) of finished steel, while importing around 6 MT.
Government initiatives for the steel sector:
| Initiative | Description |
| Steel Scrap Recycling Policy 2019 | Promotes scientific processing and recycling of ferrous scrap. Six Vehicle Scrapping Centres established, with three more planned to commence operations soon. |
| National Steel Policy 2017 | Aims to achieve a total crude steel capacity of 300 MTPA and a total crude steel demand/production of 255 MTPA by 2030-31. |
| Preference to Domestically Manufactured Iron and Steel Products (DMI & SP Policy) | This resulted in the import substitution of steel products in India |
| Productivity Linked Incentive Scheme (PLI) | Attracted investment of around ₹30,000 crores and has the potential to generate employment for 55,000 individuals. |
| Branding steel produced in India as “Made in India” | Aims to differentiate Indian steel in the market by emphasizing its origin. |
| Green Steel | 13 task forces were constituted to promote decarbonization in the steel sector. |
| Industrial Deep Decarbonisation Initiative | India joined the UK to co-lead this initiative under the banner of the Clean Energy Ministerial. |
| Purvodaya initiative | Facilitates the establishment of greenfield steel clusters in the Eastern states of Chhattisgarh, Jharkhand, West Bengal, Odisha, and Andhra Pradesh. |
