Welcome to the Hashtag Steel blog, where we explore the fascinating world of steel and its role in shaping India's economy and infrastructure. As an e-commerce platform for steel commerce, we are passionate about the potential of this versatile material to drive economic growth and development while embracing sustainable practices. This blog will delve into India's population density, per capita steel consumption, and future projections, highlighting the opportunities and challenges ahead.
India's Current Population and Density:
With a population of more than 1.4 billion in 2023, India is the world's s most populous country. This vast population density of 481 people per square kilometer is significantly higher than the global average of 59 per square kilometer. India overtook China to become the most populous country at the end of April 2023 emphasizing the nation's immense potential for growth and development.
Per Capita Steel Consumption in India Globally:
India's per capita steel consumption currently stands at around 77.2 kg, far below the global average of 224.5 kg. However, there is good news: India saw a 50% increase in per capita steel consumption from around 51 kg in 2014, reaching approximately 77.2 kg in 2023. This increase in consumption is mainly due to one; domestic availability and accessibility of coal and iron ore, two crucial raw materials for steel production, combined with cost-effective labour and low conversion costs for steel. Two, the Government had brought National Steel Policy (NSP), 2017, which envisages steel per capita consumption to increase to 160 kg. by 2030-31. Also, steps have been taken in these directions, like, efforts to promote steel usage by inserting new GFR rules 136(i)(iii) to consider life cycle cost analysis in Government projects for steel-intensive structures, holding workshops, collaborative branding campaigns, namely 'Ispati-Irada', push for Capital Goods manufacturing in the country and Steel Clusters near the steel plants. Also, Government's 'Make-in-India' initiative for the manufacturing sector and schemes for the building & construction sector, such as Rural and Urban Housing Schemes and the infrastructure development sector, provided the impetus to the demand and consumption of steel in the country. Further, the Government's plan of investment of Rs 100 lakh crore (US$ 1.43 trillion) for infrastructure development in the next five years will boost the country's demand and per capita steel consumption. Despite this progress and efforts, India still has a long way to go, as it accounts for only about 1/3 of the global average.
Future Projections for Steel Consumption:
India's steel sector has a promising future since the government has set an ambitious target of increasing the steel production capacity to 300 million tonnes (MT) and the per capita steel consumption to 160 kg by 2030-31. To achieve this, the government has announced several initiatives and policies to support the steel industry, such as the National Steel Policy 2017, the Steel Scrap Policy 2020, the Production Linked Incentive Scheme, and the National Infrastructure Pipeline. These measures are expected to boost the domestic steel demand and consumption, which are projected to reach 230 MT by 2030-31, up from 90.68 MT in 2017-18.
Opportunities and Challenges:
India's low current per capita steel consumption presents tremendous opportunities for growth, especially with government infrastructure initiatives and economic development fostering urbanization. This burgeoning demand creates vast opportunities for best steel producers in one of the world's fastest-growing economies, and it plays a pivotal role in supporting critical sectors such as housing, railways, defence, automobiles, and appliances.
However, along with the opportunities come environmental concerns. Higher steel production and consumption contribute to air and water pollution, solid waste, and greenhouse gas emissions. To ensure sustainable growth, it is imperative to adopt green technologies and promote clean steel production. As the steel industry accounts for 2% of India's GDP and employs millions of people, incorporating environmentally friendly practices can lead to a greener and more prosperous future.
As we conclude our analysis of India's population density, per capita steel consumption, and future projections, we recognize steel's pivotal role in driving economic growth and development. With India's vast population and burgeoning urbanization, steel demand is set to soar in the coming years, offering tremendous opportunities for businesses and stakeholders.
At Hashtagsteel, we are committed to providing an e-commerce platform that facilitates the efficient and sustainable steel trade, promoting growth while upholding environmental responsibility. Together, let's embrace the power of steel as a catalyst for progress and a building block for a better, greener India. Join us on this exciting journey towards a future of prosperity and sustainability.
By @Suvina E.P on Wednesday, 11 October 2023