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.
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.