India's crude steel production increased 25 per cent year-on-year to 66.91 million tonne during the April-October period of 2021-22, according to the Economic Survey.
During the period, the country's output of finished steel registered a year-on-year (y-o-y) growth of 28.9 per cent to 62.37 MT, while the consumption of the same grew 25 per cent to 57.39 MT, the Survey for the ongoing financial year said.
Finance Minister Nirmala Sitharaman on Monday presented the Economic Survey that details the state of the economy ahead of the government's Budget for the fiscal year beginning April 1, 2022.
Noting that the performance of the steel industry is pivotal for the growth of the economy, the Survey said "despite being hit by Covid-19, the steel industry has bounced back with cumulative production of crude and finished steel in 2021-22 (April-October) at 66.91 MT and 62.37 MT, an increase of 25.0 per cent and 28.9 per cent respectively over the corresponding period last year."
It is important to point out that global steel production has slowed down, the Survey said adding the global steel production in November 2021 was at 143.3 MT, a 9.9 per cent decrease compared to November 2020.
With the economic recovery, the global demand for steel is slated to increase this year and the next and the trend is expected to continue the next financial year as well. This is mainly on account of the government's focus on infrastructure development including roads, railways and defence production.
The PLI scheme for speciality steel is also "well-timed" to provide the necessary incentive towards investment in value-added steel - a step in the direction to increase its production for internal consumption as well as exports.
Additional measures such as domestically manufactured Iron and steel products (DMI&SP) policy, quality control order covering carbon steel, alloy steel, tin plate, tin-free steel and stainless steel and a research and development scheme viz. "Promotion of R&D in Iron & Steel Sector” to address the technical issues faced by the sector also aim to strengthen the industry, the Survey said.