Today, the Indian steel industry, as the 2nd largest crude steel producer globally with a capacity of over 140 million tonne has come a long way. As against the crude steel capacity of 143.91 million tons (MT), the production of crude steel and finished steel stood at 102.49 MT and 94.66 MT, respectively, in 2020-21. Crude steel production in India is estimated to increase by 18% and is expected to reach 120 million tonnes in 2021-22.

India is the world’s largest producer of sponge iron. Our country has a host of coal based units located in the mineral-rich states. Over the years, the coal based route has emerged as a key contributor and has accounted for 82% of total Sponge Iron production in the country during 2020-21. Production of Sponge Iron has continuously increased over the years and has stood at 34.38 MT in 2020-21.

The growth in the Indian steel sector has been driven by domestic availability of raw materials such as iron ore and cost-effective labour. Consequently, the steel sector has been a major contributor to India’s manufacturing output. Increasing per capita steel consumption and production of special steel as well as enhancing raw material security will remain the key focus areas of the Government in 2022.

As per the National Steel Policy 2017, the government has set a target to ramp up the country's crude steel production output to 300 million tonnes by 2030. The policy also seeks to increase the domestic per capita consumption to the level of 158 Kg by 2030. In 2020-21 the per capita steel consumption in India was 72.3 Kg in comparison to the Global per capita consumption of 229 Kg.

When we talk of the growth potential of Odisha, the state is considered to be the mineral hub of India with 92% chromite, 92% Nickel, 52% Bauxite, 44% Manganese, 33% Iron Ore and 24% Coal reserves of the country. About half of the country’s iron ore production is produced by Odisha, which makes it an ideal location for setting up steel industries. The installed capacity of crude steel making in Odisha has now grown to 33 MT per annum in 2020-21 from just 4 MT per annum in 1999-2000 and is projected to be 100 MT in 2030. The state is the largest producer of stainless steel in the country and has more than 20% of steel making capacity of the country. Major Steel producers like TATA steel, Jindal Stainless Steel (JSL) and Jindal Steel and Power Limited have their integrated steel plants in the state. Arcelor Mittal/Nippon Steel which has started pellet production will be setting up a greenfield integrated mega steel plant of 24 MTPA capacity, for which Odisha government has already given approval. Jindal Steel works (JSW) is also going to set up a Greenfield integrated mega steel plant having a capacity of 12 MTPA which has been approved by the State government. Odisha is expected to produce approximately 100 MT by 2030. This additional production in Odisha will be catalysed by the greenfield plants as well as brownfield ramp-ups by Tata Steel, Jindal Steel & Power (JSPL), Jindal Stainless (JSL).

The annual average growth rate of the industry sector in Odisha during the last 9 years is projected at 5.36% as against 3.77% at the national level, according to the State Focus Paper (2022-23) study conducted by National Bank for Agriculture and Rural Development (NABARD). The industry sector continues to have a growing contribution in the State’s Gross Value Added (GVA) economic productivity metric, with a 36.26% share to 26% at the National level. It is anticipated that the high growth rate of the industry sector will also contribute to the remarkable growth rate of the steel industry of the state.