Steel is a deregulated sector and the government acts as a facilitator. The following table lists the details of steel production and consumption during the last five years:-

Year	Crude Steel (in MnT)	Finished Steel  (in MnT)
	Production	Production	Consumption
2019-20	109.14	102.62	100.17
2020-21	103.54	96.20	94.89
2021-22	120.29	113.60	105.75
2022-23	127.20	123.20	119.89
2023-24	144.30	139.15	136.29
Apr.-Oct. ‘23	82.47	79.13	76.01
Apr.-Oct. ‘24	85.40	82.81	85.70
Source: Joint Plant Committee(JPC);

 

 

The impact of steel sector on other sectors like construction, automotive and defence is as follows:-

Construction Sector: Steel is integral to the construction of large-scale infrastructure projects such as highways, bridges, railways, and metro systems.The demand for steel products, including TMT bars, rebar, and wire rods, is linked to infrastructure expansion initiatives of the government like Bharatmala and Sagarmala and affordable housing programs like Pradhan Mantri Awas Yojana (PMAY).

Automotive Sector: Steel is used in manufacturing a wide range of components, including chassis, body panels, and engine parts. As the automotive industry continues to grow—fueled in part by initiatives such as Make in India—the demand for high-quality steel products has expanded. Steel’s combination of strength and lightness is critical for meeting stringent safety standards while also improving fuel efficiency, making it a key material in modern vehicle production.

Defence Sector: The need for specialized, high-strength steel alloys has risen alongside increasing defense investments to strengthen the country’s military capabilities. Beyond equipment, steel is crucial in constructing defense infrastructure, such as military bases and storage facilities, roads and bridges which require durable and resilient materials to ensure long-term security and stability.

This information was given by the Union Minister for Steel and Heavy Industries, Shri H.D. kumaraswamy in a written reply in the Lok Sabha today.

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MG/KSR

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