Steel producers should focus on exporting value-added goods rather than semi-finished steel, according to the Minister of State for Steel, because steel production and export have a direct influence on the country's economic growth and jobs.
Faggan Singh Kulaste, the Minister of State for Steel and Rural Development, stated on Tuesday that the country exported 13.5 million tonnes of completed steel worth USD 1 trillion and imported steel worth USD 46,000 crores.
The steel sector's outstanding success led to India's all-time high in goods exports of USD 420 billion dollars.
Kulaste noted during a conference on Steel and Engineering Exports organised by Metalogic, PMS, that despite the hurdles posed by Covid-19, it is encouraging to see that the Steel Sector, both in terms of foreign trade and domestic steel production and consumption, has set new records. The engineering industry, which is intertwined with the industrial and infrastructure sectors, is critical to India's economy, and the steel sector is integral to it.
India's all-time high steel consumption of roughly 106 million tonnes and output of 120 million tonnes demonstrates not just the sector's resilience, but also the steel industry's outstanding grit and resolve, according to the Minister of State.
Further, on the steel sector's performance, the Minister of State stated that we have the opportunity to do better in all sectors of the steel sector. As you are aware, the Indian steel business is thriving, with annual growth rates of roughly 5% to 6%, he stated.
The Government of India has introduced the Production Linked Scheme (PLI) to produce specialty steel in India, and we hope that our strong steel sector will be successful in producing the identified products in the coming days to meet domestic demand as well as export to increase their share in the country's external trade.
With our government's policy announcements and changes in global supply-demand equations across sectors such as railways, roads, aviation, gas pipelines, and housing, the sector is expected to grow significantly in the coming years as a result of increased infrastructure and industrial production investment, Kulaste said.
Steel demand has increased in the country. But, at the same time, steel's competitiveness with alternative materials has grown. Steel is being replaced by alternative materials such as composite materials in numerous areas such as automobiles, white goods, trains, and space owing to the high cost of steel and its heaviness. Composite materials are lighter, stronger, and less expensive than steel.
The Minister recommended steel producers employ cutting-edge technologies to lower the cost of steel production, and said that the industry must be prepared to confront the difficulties of steel production from alternative sources.
Steel producers should focus on exporting value-added goods rather than semi-finished steel, according to the Minister of State for Steel, because steel production and export have a direct influence on the country's economy and jobs.
He went on to say that the Ministry of Steel is always communicating with stakeholders in the steel industry to develop policy formulations for the sector's growth. The export of completed steel has grown while imports have declined as a result of policies made by our government from time to time. Due to the execution of the Quality Control Order, the import of substandard steel has been greatly reduced, and the QCO has been implemented on 142 standards so far.