India’s domestic steel production is projected to surpass 300 million tonnes by 2030, according to Minister of Steel Industry Nagaendra Nath Sinha. This forecast was shared during a meeting with the Bharat Chamber of Commerce (BCC), as reported by The Economic Times.
The current high demand for steel is driven by government-supported infrastructure projects. Both public and private sectors are expected to maintain this demand. The Ministry of Steel does not foresee any obstacles to increasing capacity, despite ongoing decarbonization efforts. A draft roadmap focusing on reducing carbon emissions, increasing hydrogen use, and capturing carbon in the steel industry will soon be published for public feedback. The short-term goal is to reduce the industry’s carbon emissions by 20%.
From January to April 2024, India produced 49.5 million tonnes of steel, an 8.5% increase from the same period last year. However, some manufacturers have been noted for not providing accurate data on production volumes and sales, which the Minister urged to improve for better policy-making.
Despite concerns about iron ore shortages and cheap steel imports, imports constitute only 5% of consumption. Complaints about hot-rolled steel from Vietnam have been addressed by the Directorate General for Trade Remedies.
By the end of the fiscal year 2024/2025, steel production in India is expected to grow by nearly 6% year-on-year to 152 million tonnes, driven mainly by metallurgical plants with blast furnaces. These expansion plans were developed before global decarbonization efforts became a priority.
