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Construction : Web Exclusive | May 2017 | Source : CW-India

Indian steel industry reaps success from ‘Make In India’ – Steel Users Federation of India

  • India set to become world’s second largest steel producer by 2018-19.
  • Production target of 300 million tonne by 2030.

India is all set to grab the second position from Japan as the largest steel producer by 2018-19. As per the projections by Indian Government, the Indian mills marked record level production to meet the increasing demand in infrastructure, new homes and consumer goods.
 
Nikunj Turakhia, President, Steel Users Federation of India (SUFI) says, “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.
 
The Indian Government has laid emphasis on “Be Indian Buy Indian”, thus emphasising to necessarily buy only domestic manufactured steel, which will eventually drive the consumption. 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.
 
“The industry in under great anticipation since the big Budget allocation in infrastructure development, as the announcement sets high consumption targets. This can prove to be a major demand driver for the growth of steel sector. Such a move from the government augurs for further investment in steel sector, giving a major push to the industry as a whole.” Turakhia adds.
 
However, it needs to be seen how the problem faced by steel sector will be addressed by the government is prepared to implement way out for the such as, inefficient logistics system, high interest rates, lack of assured raw material supply and huge debt on the steel sector. “Once there issues are addressed properly, we believe there is no stopping for industry to achieve its production target of 300 million tonne by 2030 from the current 110 million tonne,” Turakhia ended.

 
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