India: Govt Looks For a Leap In Steel Export by 2030

India intends to become a major exporter of steel in the global market, apart from creation of a 300 MnT annual steel capacity in the country by 2030-31. The country will target both the developing East and West markets for exports because these are in the close vicinity.

According to the draft national steel policy, 2017 which will be finalized soon, more exports will also help domestic firms to ease the foreign exchange risk orginating out of fluctuations in the global raw materials market especially for coking coal. India’s current steel production capacity is around 122 MnT.

“While the main focus of the industry is on the domestic market, being in close proximity of the developed west and developing east, provides it a strategic location that augurs well for the industry seeking opportunities for exports of finished goods and imports of some scarcely available raw materials,” the draft policy said.

India was a net exporter of steel in 2013-14. However, due to global downturn in steel demand and excess capacities in major steel-making countries such as China and Japan, India witnessed a significant surge in imports in 2014-15, which continued in 2015-16 as well.

The country had exported 6 MnT in 2013-14, 5.6 MnT in 2014-15, 4.1 MnT in 2015-16 and till November of the current fiscal, India’s export stood at 4.2 MnT. If the current fiscal’s export-import trend continues for the remaining three months, India may become a net exporter of steel yet again.

Assuming that the capacity would be 300 MnT by 2030-31, the ministry intends that the industry sends at least 10% of the total produce to the export markets. The ministry would encourage domestic firms to be globally competitive and develop export markets.

It also wishes steel plants to come up along the coast lines based on the idea of importing insufficient raw materials and exporting steel products.

“To exploit export opportunities and be competitive on account of low cost of ocean freight, the government of India is contemplating port-led development of steel clusters under the aegis of Sagarmala programme. Establishment of coast based steel plants will suitably be undertaken in conjunction with ministry of shipping,” the report said.