Context:
India has become the world’s second-largest steel producer, with crude steel output rising from 28 million tonnes in FY02 to 152 million tonnes in FY25. However, India still depends on imports for speciality steel, while also facing green-transition pressures such as the EU’s CBAM.
Explanation:
- Steel is a key industrial material used in infrastructure, construction, railways, automobiles, defence and manufacturing.
- India’s steel growth is driven by urbanisation, infrastructure expansion, domestic demand and capacity addition.
- India mainly produces basic steel, while speciality steel with advanced properties is imported for sectors like automobiles and high-end construction.
- The PLI Scheme for Speciality Steel aims to reduce import dependence and promote advanced steel manufacturing.
- Steel is a hard-to-abate sector due to high carbon emissions.
- EU-CBAM may affect Indian steel exports by imposing carbon-linked costs.
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India Steel Industry: Growth and Green Transition