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Investment in process, digital technologies in Indian steel value chain likely to reach US$ 2.7 billion by 2030: FICCI-Deloitte Report
Aug 22, 2024
NEW DELHI, 22 August 2024: FICCI-Deloitte India report, on ‘Automation, Digitalisation and Technology Integration for the Indian Mining and Steel sector’, released today highlights that Indian steel sector is projected to grow significantly aligning with the country’s expected economic growth during the Amrit Kaal journey till 2047.
The investment in process and digital technologies across the steel value chain in India is projected to increase from US$ 1 - 1.2 billion in 2024 to US$ 2.3-2.7 billion by 2030, excluding ERP upgrades. This investment will advance technological capabilities and drive significant progress toward a more efficient and sustainable mining and steel industry.
India seeks to reach 300 million tonnes of crude steel capacity by 2030 and 500 million tonnes by 2047. The consumption across sectors of the end-user ecosystem will drive this growth, which will also be promoted by government expenditure and increasing urbanisation. The global and Indian steel sectors have witnessed significant technological advancements, which have driven efficiency, productivity, and sustainability improvements across the entire value chain, states FICCI-Deloitte India report. The Indian steel industry has undergone significant changes over the last decade, with rapid steel capacity and consumption growth. Domestic steel consumption has grown robustly, driven by infrastructure and automotive demand and supported by government investments.
The Indian steel sector has emerged as a significant driver, of the country’s economic growth, playing a pivotal role in industries such as construction, infrastructure, automobile, engineering, and defence. The steel sector contributes around 2 per cent to India’s GDP and employs 6 lakh people directly and 20 lakh indirectly. The new Steel policy enshrines the government’s long-term vision for the steel sector. It also seeks to enhance domestic steel consumption, ensure high quality production and create a technologically advanced and globally competitive steel industry.
The per capita steel consumption is anticipated to reach 160 kg by 2030 and around 220 kg by 2047. Digital tools can help to enhance compliance with environmental regulations through better energy efficiency and emission monitoring. Furthermore, digital technologies offer the flexibility and scalability necessary to adapt to market changes, drive innovation, and improve worker safety. Integrating digital technologies across the value chain can thus unlock transformative capabilities.
Addressing the conference on ‘Automation, Digitalization & Technology Integration in Mining & Steel: Driving the Next Era of Growth’, organizing by FICCI, jointly with the Ministry of Steel, Govt of India, Mr Amarendu Prakash, Chair, FICCI Steel Committee and Chairman, Steel Authority of India (SAIL) said, “The enabler to adopt digitalization in the mining and steel sector is change management in terms of the people that you have. People must see installation and automation as an enabler rather than as a substitute.”
Mr Amitava Mukherjee, Chair, FICCI Mining Committee and CMD (Additional Charge), NMDC Ltd said that the mining and steel sectors are on the cusp of a transformative journey. “The convergence of digital technologies with traditional industrial practices is not merely a trend but it is an imperative for the future. Automation, digitization, and technology integration are no longer optional; they are the cornerstones upon which the future of these industries will be built,” he added
Mr Gajraj Singh Rathore, Co-Chair, FICCI Steel Committee and Whole Time Director & COO, JSW Steel Ltd said that as we look towards the future, the challenges we face including environmental, economic or technological cannot be overcome by individual efforts alone. “Collaboration will be key to our success. By fostering a culture of innovation, tech adoption, digitalization and partnerships, we can collectively shape a resilient, prosperous and sustainable future for all,” he noted.
Mr Rajib Maitra, Partner, Deloitte India, said, “The Indian mining and steel sector is on a transformative path, spurred by innovations in AI and digital technologies. The operators, on ground, face practical challenges like integrating new systems with legacy infrastructures and managing the costs associated with technological upgrades. To navigate these hurdles, targeted initiatives such as focused training programs for frontline workers and strategic partnerships for technology integration are essential. These efforts will equip the sector to enhance day-to-day operations and achieve long-term sustainability goals effectively.”