Surge in Steel Imports and Challenges for Indian Steel Industry
GS-3 mains : Economy
Short Notes or Revision Notes
Question : Examine the factors contributing to India’s shift to a net importer of steel in recent years.
Concerns
- India becoming a net importer of steel in 2023-24.
- 38% surge in finished steel imports (8.319 million tonnes in 2023-24 compared to 6.022 million tonnes in 2022-23).
- Predatory imports from China threaten India’s self-sufficiency goal (Atmanirbharta) in steel.
Importance of Steel Sector
- Pivotal role in construction, infrastructure, automobile, engineering, and defense.
- India is the 2nd largest steel producer globally.
- Steel sector is a major contributor to India’s manufacturing output.
Government Initiatives
- National Steel Policy (NSP) 2017: Aims to boost domestic steel consumption, high-quality production, and global competitiveness.
- Production-linked incentive (PLI) scheme for specialty steel.
- 100% FDI allowed for the steel sector.
Challenges
- Low investment in technology and infrastructure.
- Raw material availability (iron ore and coking coal).
- Health and safety concerns.
- Environmental impact of steel production.
Way Forward
- Ensure sustainable supply of raw materials.
- Enhance export competitiveness.
- Restrict predatory steel imports to protect investments and GDP growth.
- Steel industry needs to strategize for cost-competitive production.
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