Deloitte presented the ‘Steel Outlook of 2030 and 2047’ at the India Steel 2023 event, highlighting the steel industry’s potential for growth. The report notes that the Indian government’s increased infrastructure spending, accounting for almost 62% of steel consumption, will benefit the industry. Additionally, the PLI Schemes positively impact the sector and contribute to job creation and GDP growth.
However, raw material availability, such as iron ore, will be a key challenge when captive leases expire in 2030. The report recommends expediting the auctioning of new iron ore blocks and increasing steel scrap recycling centers. The steel industry will also face a challenge with the EU’s carbon border adjustment mechanism, which imposes a carbon tax on imports from high-carbon-emitting countries.
India’s carbon dioxide emissions per tonne of crude steel are higher than the EU and the US. The report highlights the need for a sustainable approach to steel production through decarbonization, circularity, energy transition, and carbon capture. Finally, the report envisions 300 mt and 500 mt of crude steel capacity by 2030 and 2047, respectively, focusing on skill development, R&D, and supporting the secondary steel producers.