India’s steel industry is undergoing a phenomenal transformation, fueled significantly by the government’s ambitious “Make in India” initiative. This strategic push towards domestic manufacturing is not just about producing more steel; it’s about building a self-reliant nation, creating jobs, and solidifying India’s position as a global industrial powerhouse.
The Vision of “Make in India” for Steel
Launched in 2014, “Make in India” aimed to make India a global manufacturing hub. For the steel sector, this translates into several key objectives:
- Boosting Domestic Production: The core idea is to increase the production of crude steel and finished steel within the country, reducing reliance on imports. India is already the world’s second-largest crude steel producer, with production reaching 144.299 Million Tonnes (MT) in FY 2023-24. The National Steel Policy 2017 further aims for a whopping 300 MT production capacity by 2030-31.
- Enhancing Self-Reliance (Atmanirbhar Bharat): By encouraging domestic manufacturing, India aims to become “Atmanirbhar” or self-reliant in critical sectors like steel, a foundational material for infrastructure development, construction, automotive, and engineering industries.
- Job Creation: Increased domestic production inevitably leads to the creation of numerous direct and indirect employment opportunities across the value chain, from mining to manufacturing and logistics.
- Technological Advancement: The initiative pushes for the adoption of state-of-the-art technologies in steel production, including advanced furnace methods and the development of specialty steel, which India previously heavily imported.
Key Policies and Their Impact
The Indian government has implemented several impactful policies to bolster the “Make in India” vision for steel:
- Production Linked Incentive (PLI) Scheme for Specialty Steel: This scheme, with an outlay of INR 6,322 crore, provides financial incentives to manufacturers producing high-grade and specialized steel within India. This is crucial for reducing import dependence on critical steel grades used in defense and strategic sectors.
- Domestically Manufactured Iron & Steel Products (DMI&SP) Policy: This policy prioritizes “Made in India” steel for government procurement, ensuring that public projects utilize domestically produced steel, thereby creating a captive market and boosting local demand.
- Reduction in Customs Duties on Raw Materials: To make domestic steel more competitive, duties on key raw materials like Ferro Nickel have been reduced to zero, and exemptions on ferrous scrap have been extended.
- Steel Quality Control Orders: These orders ban sub-standard or defective steel products, both domestic and imported, ensuring that only high-quality steel conforming to Indian Standards is available in the market. This fosters trust in “Made in India” products.
- PM Gati Shakti National Master Plan: This initiative integrates various utility services and logistics modes, improving connectivity for steel units and mine areas, thereby reducing logistics costs and increasing efficiency.
The Road Ahead
While challenges like competition from cheap imports (often referred to as “dumping”) persist, the “Make in India” initiative has undeniably spurred significant growth and investment in the Indian steel sector. Major players like JSW Group, Tata Steel Limited, and Steel Authority of India Limited (SAIL) are at the forefront of this revolution, expanding capacities and embracing sustainable practices like green steel production.
The trajectory is clear: India’s steel industry, empowered by “Make in India,” is poised for continued robust growth, cementing its role as a cornerstone of the nation’s economic development and a formidable force in the global steel landscape.