India Leads Global Steel Demand Growth Since 2021, Says Ministry of Steel
New Delhi [India], August 16: India has been recognized as the leading global driver of steel demand growth since 2021, according to a statement from the Ministry of Steel. The ministry highlighted that the World Steel forecast predicts a 1.7% rebound in global steel demand this year, reaching 1,793 metric tons. Additionally, by 2025, steel demand is projected to grow by 1.2%, reaching 1,815 metric tons.
The ministry emphasized that India’s steel demand is expected to continue its upward trajectory with an 8% growth over 2024 and 2025. This growth is largely attributed to ongoing expansion across all sectors that use steel, particularly infrastructure projects.
In the first quarter of FY25, India’s steel sector set a new benchmark, surpassing previous fiscal year levels. Crude steel production reached 36.61 million tonnes (MT), finished steel production was 35.77 MT, and finished steel consumption hit 35.42 MT.
The Ministry of Steel noted that the steel sector is essential to industries such as construction, infrastructure, automotive, engineering, and defense. India has become a major global player in steel production, standing as the world’s second-largest producer of steel. The per capita consumption of steel in India has doubled from 59 kg in 2013-14 to 119 kg in 2022-23. In 2023, India produced 140.2 million tons of steel.
Looking ahead, the National Steel Policy (NSP) projects significant expansion in the sector. By 2030-31, India is expected to achieve a total crude steel capacity of 300 million tons, with crude steel production reaching 255 million tons and finished steel production at 230 million tons.
Doubts Revealed
Ministry of Steel -: The Ministry of Steel is a part of the Indian government that looks after the development and regulation of the steel industry in India.
World Steel -: World Steel is short for the World Steel Association, an international organization that represents steel producers and provides data and forecasts about the steel industry.
metric tons -: A metric ton is a unit of weight equal to 1,000 kilograms. It is used to measure large quantities, like steel production.
infrastructure investments -: Infrastructure investments refer to spending money on building and improving things like roads, bridges, and buildings, which helps the economy grow.
FY25 -: FY25 stands for Fiscal Year 2025, which is a one-year period used for accounting and budget purposes. In India, it usually starts on April 1, 2024, and ends on March 31, 2025.
National Steel Policy -: The National Steel Policy is a plan made by the Indian government to grow and improve the steel industry in India by the year 2030-31.
