Economy News

Ministry of Steel has noted that India is the only major economy, where steel consumption is growing at above 12% for the last three years. On the contrary, the steel consumption in other geographies is either stagnant or decline. This fast growth in steel consumption is due to Government of India's push on infrastructure strengthening, public and private sector development in buildings and real estate and growing manufacturing of capital goods in the country. To cater to this steel demand, the country will need about 300 million tonnes or MT steel capacity by 2030 and 400 MT of steel capacity by 2035. This capacity creation will require capital infusion of approximately US$ 200 billion by 2035. If substandard cheap steel imports affect the domestic steel industry (both integrated steel producers and small steel industries) their capacity to infuse this capital will come into terrible strain and the capacity expansion plans of steel industry will be adversely affected.

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