Lead­ing Edge: Flour­ish­ing Steel and Min­ing Sec­tors Make In­dia Com­pet­i­tive in the Global Setup

In­dia's per­for­mance in the sec­tor has been quite sat­is­fac­tory with per capita con­sump­tion of steel grow­ing at a CAGR of 4.8 per cent from 45 kgs in FY09 to 65.25 in FY17 and as of Fe­bru­ary 2018, the per capita con­sump­tion stands at 68 kgs.

FICCI Business Digest - - News -

In a ma­jor achieve­ment, In­dia over­took Ja­pan to be­come the world's sec­ond largest pro­ducer of crude steel in Fe­bru­ary 2018. Easy avail­abil­ity of low-cost man­power and pres­ence of abun­dant iron ore re­serves, be­ing the chief driv­ers of growth in the In­dian steel sec­tor, makes In­dia com­pet­i­tive in the global setup. Con­se­quently, the steel sec­tor has been a ma­jor con­trib­u­tor to In­dia's man­u­fac­tur­ing out­put and we ex­pect it to grow at an even health­ier pace in the years to come.

The steel in­dus­try con­trib­utes over 2 per cent to coun­try's GDP and pro­vides 20 lakh jobs in the coun­try. In­dia's per­for­mance in the sec­tor has been quite sat­is­fac­tory with per capita con­sump­tion of steel grow­ing at a CAGR of 4.8 per cent from 45 kgs in FY09 to 65.25 in FY17 and as of Fe­bru­ary 2018, the per capita con­sump­tion stands at 68 kgs.

The Na­tional Steel Pol­icy projects crude steel ca­pac­ity of 300 MT, production of 255 MT and per capita

con­sump­tion of 160 kg of fin­ished steel by 2030-31. To achieve steel ca­pac­ity build-up of 300 mil­lion tonnes per an­num by 2030, In­dia would need to in­vest US$156.08 bil­lion by 2030-31. Steps are also afoot to pro­mote new us­ages of steel in the coun­try across con­struc­tion and in­fras­truc­ture projects. The in­dus­try is also aim­ing to achieve the sta­tus of a 'zero waste' in­dus­try by min­i­miz­ing pol­lu­tion across the gamut of ac­tiv­i­ties rang­ing from min­ing of min­er­als to the fi­nal steel­mak­ing process.

As far as min­ing is con­cerned, the in­dus­try is con­sid­ered as a ma­jor eco­nomic ac­tiv­ity in In­dia, con­tribut­ing around 1 per cent to the GDP. Min­ing un­de­ni­ably lies at the core of eco­nomic devel­op­ment. It would not be mere ex­ag­ger­a­tion to state that man­u­fac­tur­ing sec­tor de­pends largely on the min­ing ac­tiv­ity to grow and even sur­vive.

Un­lock­ing the min­ing po­ten­tial

Thus, ap­pre­ci­at­ing the im­por­tance and rel­e­vance of the steel and min­ing in­dus­tries, FICCI or­ga­nized a na­tional sem­i­nar on 'Re­spon­si­ble Min­ing in New Paradigm and Growth & In­vest­ment Op­por­tu­ni­ties for Min­ing and Steel in Min­eral Rich States' in Raipur, Ch­hat­tis­garh, on 24-25 April 2018.

Un­der­lin­ing the Gov­ern­ment of In­dia's vi­sion at the sem­i­nar, Vishnu Deo Sai, Min­is­ter of State for Steel, said, 'In years to come min­ing and steel in­dus­tries are ex­pected to be the key in­dus­tries at­tract­ing huge in­vest­ments (both do­mes­tic and for­eign) thereby gen­er­at­ing ad­di­tional em­ploy­ment in the coun­try. We must start look­ing overseas for as­sets ac­qui­si­tion to gain global com­pet­i­tive ad­van­tage. There should be more ex­change vis­its and par­tic­i­pa­tion in sim­i­lar na­tional and in­ter­na­tional events to in­crease the ex­change of in­for­ma­tion, best prac­tices and tech­nol­ogy trans­fer while pro­mot­ing skill devel­op­ment and joint ven­tures. The gov­ern­ment is pro­vid­ing a favourable and con­ducive en­vi­ron­ment for the two in­dus­tries to flour­ish.'

Among the In­dian states, Ch­hat­tis­garh is a lead­ing pro­ducer of min­er­als such as coal, iron ore and dolomite and is ranked third in terms of value of ma­jor min­eral production in In­dia. More­over, con­sid­er­able re­serves of baux­ite, lime­stone and quartzite are avail­able in the state. Ch­hat­tis­garh is the only state in In­dia that pro­duces tin con­cen­trates. The state ac­counts for ap­prox­i­mately 35 per cent of tin ore re­serves of In­dia.

Rec­og­niz­ing the piv­otal role of min­er­als in in­dus­tri­al­iza­tion of the state, Amar Agar­wal, Min­is­ter, Com­merce & In­dus­tries, Com­mer­cial

Tax and Ur­ban Ad­min­is­tra­tion & Devel­op­ment, Gov­ern­ment of Ch­hat­tis­garh, high­lighted, 'Our gov­ern­ment in­tends to fo­cus on ben­e­fi­ci­a­tion and pro­cess­ing of th­ese min­er­als to max­i­mize value ad­di­tion within the state, in­stead of ex­port­ing them. The min­eral re­sources have im­mense po­ten­tial for large in­vest­ments in min­ing, set­ting up of min­eral-based in­dus­tries and gen­er­at­ing large-scale em­ploy­ment.'

Re­it­er­at­ing Agar­wal's stance, Su­nil Barth­wal, Joint Sec­re­tary, Min­istry of Steel, Gov­ern­ment of In­dia, said that Ch­hat­tis­garh is blessed with vast nat­u­ral re­sources. The so­cioe­co­nomic en­vi­ron­ment in the state has dras­ti­cally changed over the past 12 years with GDP of the state grow­ing at a CAGR of more than 12 per cent be­tween 2011-17. Ch­hat­tis­garh now ranks in top five states in 'Ease of Do­ing Busi­ness' and has be­come an ideal in­vest­ment des­ti­na­tion for min­ing and steel in­dus­tries.

'FICCI has been ac­tively pro­mot­ing the growth agenda of the two in­dus­tries. Our fo­cus has al­ways been on do­mes­tic value ad­di­tion and en­sur­ing suf­fi­cient avail­abil­ity of raw ma­te­rial to end use in­dus­tries like steel and power. Our mantra and fo­cus here has been on Mine in In­dia to Make in In­dia,' added Tuhin Mukher­jee, Chair, FICCI Min­ing Com­mit­tee.

Fol­low­ing the suc­cess of the event, FICCI is or­ga­niz­ing an in­ter­na­tional con­fer­ence ti­tled 'Min­er­als & Met­als Out­look 2030' on 9-10 Oc­to­ber 2018 in New Delhi, fo­cus­ing on min­ing, steel and non-fer­rous met­als in­dus­tries. The key ob­jec­tive will be to char­ter the vi­sion for in­dus­tries till 2030. The event will wit­ness the pres­ence of global min­ing and metal CEOs along with coun­try heads of key min­eral and min­eral-based coun­tries.

In years to come min­ing and steel in­dus­tries are ex­pected to be the key in­dus­tries at­tract­ing huge in­vest­ments (both do­mes­tic and for­eign) thereby gen­er­at­ing ad­di­tional em­ploy­ment in the coun­try. We must start look­ing overseas for as­sets ac­qui­si­tion to gain global com­pet­i­tive ad­van­tage.

Vishnu Deo Sai Min­is­ter of State for Steel Gov­ern­ment of Ch­hat­tis­garh

Dig­ni­taries at the ex­hi­bi­tion or­ga­nized dur­ing the sem­i­nar.

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