As demand for steel is set to rise further in years ahead, India will have to expand its steel production, said a Kearney report.
The report titled ‘Rewriting the growth story for India’s Steel industry’ noted that India had set its sights on a capacity of 180 million to 190 million tons per year (MTPA) by 2024-2025 and 300 MTPA by 2030.
However, the Covid-19 lockdown brought economic activities to an abrupt halt and slowed the steel industry with weakened demand, it said.
“With demand expected to rise from 110 million tons in 2020 to about 230 million tons by 2030- 2031, India will need to expand its steel production,” it said.
The report said that Indian steel players are likely to defer the capacity addition plans of almost 10 MT by at least one to two years.
India’s steel industry employs more than 25 lakh people through direct and indirect jobs and is expected to generate 36 lakh jobs by 2031, contributing to the country’s economic prosperity.
The construction industry is the largest user of steel, accounting for 60 per cent of the demand. Steel consumption in construction is expected to reach 138 MT by 2030-2031.