DEVELOPMENT OF INDIAN STEEL SECTOR SINCE 1991

The economic reforms initiated by the Government since 1991 have added new dimensions to industrial growth in general and steel industry in particular. Licensing requirement for capacity creation has been abolished, except for certain locational restrictions. The steel industry has been removed from the list of industries reserved for the public sector. Automatic approval of foreign equity investment up to 100% is now available. Price and distribution controls have been removed from January 1992, with a view to make the steel industry efficient and competitive. Restrictions on external trade, both in import and export have been removed. Import duty rates have been reduced drastically. Certain other policy measures such as reduction in import duty on capital goods, convertibility of rupee on trade account, permission to mobilize resources from overseas financial markets and rationalization of existing tax structure for a period of time have also benefited the Indian steel industry.

Production for Sale

a) Total Finished Steel Production for Sale

The production for sale of total finished steel (alloy/stainless + non-alloy) in the country was 100.74 million tonnes (mt) in 2016-17 (prov.) as compared to 14.23 mt in 1991-92. The high share of the Majors and Other Producers (as per classification system prevailing till 2013-14) in total finished steel production for sale was largely due to the substantial availability of raw materials, expansion of capacities and emergence of new units in these segments, among others.

Total Finished Steel (alloy/stainless +non-alloy): Production for sale (million tonnes)

Year	Main Producers	Majors and Other Producers	Production for sale	% of share of Majors and Other Producers
1991-1992	7.96	6.27	14.23	44.00
1992-1993	8.55	8.34	16.89	49.40
1993-1994	8.91	8.11	17.02	47.70
1994-1995	9.72	10.37	20.09	51.60
1995-1996	10.73	13.56	24.29	55.80
1996-1997	10.69	15.64	26.32	59.40
1997-1998	10.58	16.84	27.42	61.40
1998-1999	10.05	17.51	27.56	63.50
1999-2000	11.41	19.09	30.50	62.60
2000-2001	12.69	19.67	32.36	60.80
2001-2002	13.20	20.18	33.38	60.50
2002-2003	14.53	22.63	37.17	60.90
2003-2004	15.38	25.33	40.71	62.20
2004-2005	15.82	27.69	43.51	63.60
2005-2006	16.41	30.15	46.57	64.80
2006-2007	17.61	34.92	52.53	66.50
2007-2008	18.02	38.06	56.08	67.90
2008-2009	17.22	39.95	57.16	69.90
2009-2010	18.04	42.59	60.62	70.20
2010-2011	18.41	50.21	68.62	73.20
2011-2012	17.98	57.72	75.70	76.25
2012-2013	19.24	62.44	81.68	76.44
2013-2014	22.20	65.48	87.68	74.68

Total Finished Steel (alloy/stainless + non-alloy): Production for sale (million tonnes)

Period	ISP	Other Producers	Less: IPT/Own consumption	Production for sale	% of share of Other Producers
2014-2015	46.82	53.86	8.52	92.16	58.40
2015-2016	48.53	54.37	11.92	90.98	60.00
2016-2017	57.00	53.73	9.99	100.74	53.00