The Indian steel industry stands at a crucial juncture as Steel Secretary Sandeep Poundrik announces the need for substantial investments totaling $120 billion to achieve the nation's ambitious steel production targets. This investment is essential to add 120 million metric tons of new capacity, bringing the total to the targeted 300 million metric tons by 2030.
The current steel-making capacity in India has reached 180 million metric tons, marking significant progress in the sector's growth. However, the path to reaching the 2030 target requires extensive capacity expansion, which translates to an investment of approximately 10 lakh crores in Indian rupees. This massive financial requirement underscores the magnitude of the challenge facing the industry.
The Steel Secretary emphasizes the critical nature of industry profitability in achieving these ambitious goals. The ability to attract and sustain such substantial investments directly correlates with the sector's profitability levels. Without adequate returns, securing the necessary funding for capacity expansion becomes increasingly challenging.
The investment requirements highlight the need for a supportive policy environment that can facilitate both domestic and international investments in the steel sector. This includes ensuring adequate infrastructure, raw material security, and regulatory frameworks that promote industry growth while maintaining environmental standards.
