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280 Economic Survey 2021-22

Figure 18: Production and capacity utilization

120 85
Production in million tonnes 60 70 capacity utilisation(%)
80
100
75
80
65
60
40
55
20
50
0
45
2016
2015
2014
2017
2020
April-October 21
2018
2019
2013
Crude steel finished steel Capcity Utilisation(%)(RHS)

Source: Survey calculations based on data from Ministry of Steel *indicates provisional figure

Figure 19: Production and Consumption - Steel

Source: Survey calculations based on data from M/o Steel. P-provisional

8.20 It is important to point out that global steel production has slowed down. The reduction
in world output of steel is because of reduced global production. According to press release
by World Steel Association (November, 2021) world crude steel production was 143.3 million
tonnes (Mt) in November 2021, a 9.9 percent decrease compared to November 2020. With
economic recovery, the global demand for steel is slated to increase this year and the next. The
steel industry is expected to face increase in demand in the next financial year also. This is
mainly on account of the Government of India’s focus on infrastructure development including
roads, railways and defence production. The PLI Scheme for specialty steel is well timed to
provide the necessary incentive towards investment in value added steel -a step in the direction
to increase its production for internal consumption as well as exports. Additional measures
such as Domestically Manufactured Iron and Steel Products (DMI&SP) Policy, Quality Control
Order (QCO) covering carbon steel, alloy steel, tin plate, tin free steel and stainless steel and
a R&D scheme viz. “Promotion of R&D in Iron & Steel Sector” to address the technological