August 24th: Investments in automation and digital technologies across the steel industry value chain are expected to surge to $2.7 billion by 2030, according to a joint report by FICCI and Deloitte. These investments, up from an estimated $1-1.2 billion in 2024, aim to enhance efficiency, sustainability, and competitiveness across the steel value chain.
The report, titled “Automation, Digitalisation and Technology Integration for the Indian Mining and Steel sector,” underscores the importance of these advancements as India works toward increasing its crude steel production capacity. The country aims to hit 300 million tonnes of crude steel by 2030, expanding further to 500 million tonnes by 2047. This growth will be driven by rising demand from key sectors like infrastructure, construction, automotive, and engineering, bolstered by government spending and urbanisation.
India’s steel industry has seen significant change over the past decade, marked by rapid growth in both capacity and consumption. Domestic consumption has been fueled by large infrastructure projects and increased automotive production, alongside government initiatives. The sector currently contributes around 2% of India’s GDP and supports 600,000 direct jobs, with an additional 2 million jobs indirectly tied to the industry.
The government’s National Steel Policy sets out a long-term vision to increase domestic steel consumption, improve production quality, and foster a technologically advanced, globally competitive industry. The report projects that per capita steel consumption in India will reach 160 kg by 2030 and rise to 220 kg by 2047, reflecting the broader economic growth expected during the Amrit Kaal journey.
A key focus of the report is the role of digital technologies in the future of the steel sector. The integration of these technologies will help companies meet environmental regulations, improve energy efficiency, and better monitor emissions. Digital tools will also offer the flexibility to adapt to changing market conditions, support innovation, and improve worker safety. By embedding digital systems across the value chain, the steel industry can unlock transformative opportunities that drive sustainable progress.
As India continues its economic development, the steel sector will remain a crucial player in supporting industries like construction, infrastructure, and engineering, while also embracing the future with digital advancements.
