India's steel industry is playing a critical role in transforming the country

The Indian Ministry of Steel has released a draft National Steel Policy (NSP). The project is open for proposals from interested parties until January 23rd 2017.

According to NSP, India was the only major economy in the world where steel demand continues to grow positively at 5.3%. Rapid growth in infrastructure and manufacturing will keep demand for steel strong in the coming years. The steel industry is likely to play a critical role in transforming the country into a developed nation.

The Indian steel industry has significant growth potential. The per capita consumption of steel in the country is 61 kg, which is much lower than the global average of 208 kg. Currently, the construction and infrastructure sector accounts for 40% of total steel consumption across the country. And it is expected to increase to 59% by 2030.

At current GDP growth rates, steel demand will grow over the next fifteen years to reach 212-247 million tonnes by 2030. Increased government spending on infrastructure development, expansion of the railroad network, revival of the domestic shipbuilding industry, private sector participation in the defense industry, and expected growth in the automotive and construction industries are expected to boost steel demand in the country.

The projected growth of the metallurgical industry can only be achieved if raw materials are available at very competitive prices. The government has already come up with a new law to ensure the development of the industry. The law will clarify the allocation of mining leases and other formalities in order to ensure the availability of sufficient quantities of iron ore and other minerals.