Union Steel Secretary Sandeep Poundrik emphasized on the urgency of capacity expansion of steel production in India. India’s steel industry requires an investment of USD 120 billion (INR 10 lakh crore) to boost capacity from 180 million tonnes to 300 million tonnes by 2030 to meet its domestic demand and avoid dependence on imports.

Nov 22, 2024

India’s steel industry requires an investment of USD 120 billion (INR 10 lakh crore) to boost capacity from 180 million tonnes to 300 million tonnes by 2030, Union Steel Secretary Sandeep Poundrik said during a panel discussion at FICCI’s 97th AGM and Annual Convention.

During the event, he emphasized on the urgency of capacity expansion to meet domestic demand and avoid dependence on imports.

The union minister underscored the importance of industry profitability and policy support to achieve this ambitious target. “India’s per capita steel consumption is nearing 100 kg — a critical inflection point historically associated with accelerated growth. In the first half of FY2024-25 alone, steel consumption grew by 13% due to increased public spending on infrastructure,” he said.

Minister Sandeep further acknowledged industry concerns about dumping and its impact on profitability. He said, “Indian steel imports rose by 41%, while exports declined by 36% in the first half of this fiscal year. Steel prices are depressed, and inventory levels at steel companies have doubled to 30 days from the usual 15-16 days,” he said.

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While tariff measures like raising basic customs duty (BCD) are being examined, their impact could be limited. The conversation also touched on the privatisation and disinvestment of underperforming public sector steel units.  Finally, he concluded his address by stressing on the need to strike a balance between domestic industry profitability and growing demand.