India's Per Capita Steel Consumption Touches 63 Kg in FY16

The per capita consumption of total finished steel in India has risen from 58 kg in 2011-12 to 63 kg in 201516, according to the latest year-end review of the Ministry of Steel (MoS).

According to the review, the country’s crude steel capacity stood at 121.97 million tons in 2015-16 while production of crude steel was at 89.79 mt during the same year.

India is currently also the world’s largest producer of direct reduced iron (DRI) or sponge iron, a status it has maintained every year since 2003.

The country was also the third-largest consumer of finished steel in the world in 2015 (preceded by China and the US) and is expected to maintain the said status for 2016 also.

India is the third-largest steel producer globally and is likely to be the second-largest steel producer in a few years. The sector contributes about 2 percent to the country’s GDP and employs over 6 lakh people.

India has been a net importer of total finished steel every year since 2007-08 with the exception of 2013-14.

Over the last few years, the steel sector has been adversely impacted by the global steel glut which resulted in predatory pricing and a surge in steel imports into the country.

“Over the last few years, the steel sector has been adversely impacted by the global steel glut which resulted in predatory pricing and a surge in steel imports into the country. However, on account of timely intervention by the government and industry through various trade-related measures like anti dumping and safeguards as well as other policy initiatives, the impact of the global glut were significantly mitigated,” the review paper said.

“The government has been proactive in ensuring adequate raw material availability at reasonable prices and explored ways of reducing input, logistic and infrastructure cost of steel production. The government is also working on ways to reduce the financial stress in the steel sector by reducing imports,increasing exports as well as examining strategies of increasing steel demand,” the ministry said in its review.