FM Nirmala Sitharaman Urges Steel Industry To Cut Emissions, Boost Domestic Specialty Steel Production | VIDEO

Finance Minister Nirmala Sitharaman addressed the World Steel Association's General Assembly in New Delhi on Monday, urging domestic steel producers to prioritize decarbonisation and increase the production of specialty steel to lessen reliance on imports. The government's Production Linked Incentive (PLI) scheme, with a budget of Rs 6,300 crore, incentivises investment in domestic manufacturing and technology upgrades to enhance India's production of specialised steel needed for the economy.

While global steel industry faces excess capacity and weak demand, India's market is driven by domestic consumption and strong investment, with consumption exceeding production for two consecutive years. India's steel consumption per person is 109 kg, compared to the global average of 209 kg, providing significant room for growth.

The government's capital expenditure on public projects has increased sixfold, directly contributing to the demand for steel. Sitharaman outlined five priorities for the steel industry, such as reducing energy and carbon intensity, expanding capacity, and producing high-grade steel to support strategic sectors and reduce dependency on imports.

She also highlighted the need for India to pursue decarbonisation at a pace aligned with its development priorities and called for multilateral action on steel trade, emphasising the importance of an India office in the World Steel Association for stronger engagement with fast-growing steel markets in South Asia, Southeast Asia, West Asia, and Africa.