'India to be 2nd largest steel producer by FY 19'

India is set to become the world's second largest steel producer by 2018-19, Steel Users Federation of India (SUFI) said on Monday. "India is all set to grab the second position from Japan as the largest steel producer by 2018-19," the SUFI said in a statement.

As per the projections by the government, the Indian mills marked record level production to meet the increasing demand in infrastructure, new homes and consumer goods, reports PTI. "It is a matter of pride for every Indian and steel stake holders to see the industry perform at a record growth rate. The rapid progress in infrastructure development and adherence to government's initiatives such as 'Make in India' has given boost to steel producers across nation," SUFI President Nikunj Turakhia said.

The government has laid emphasis on 'Be Indian Buy Indian', thus emphasising to necessarily buy only domestic manufactured steel which will eventually drive the consumption, Turakhia said. "In the forefront of the Union Budget 2017 is the budget allocation of Rs 3.96 trillion towards the development of infrastructure, including emphasis on areas such as ports, roads, affordable housing and physical infrastructure," Turakhia added.

Recently, engineering exporters' apex body EEPC India has approached the Commerce Ministry seeking its intervention to curb such volatility which is adversely impacting the sector.

"We have approached the Commerce Ministry, stating that a sharp rise of over five per cent in rupee against the US dollar along with increase in prices of steel, is acting as a double whammy for engineering exporters in a highly competitive global market," EEPC India executive director and secretary B Sarkar said in a letter to Commerce Secretary Rita Teaotia, reports PTI.

EEPC said the Indian currency has appreciated against the USD by 5.26 per cent from Rs 68.0225 on January 2 to Rs 64.4418 on April 10.

"We have sought urgent attention of the government on these two issues to curb volatility in the rate of foreign exchange as well as raw materials prices, as these developments are making it extremely difficult for exporters to face international competition more so when the global conditions are one of protectionism and competing countries," he said.