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India's steel industry aims to grow through digitalization and sustainable production

India became the world’s second-largest steel producer with a production capacity of 178 million tons and an output of 144 million tons in FY2023-24. The country’s steel production is expected to reach 300 million tons by 2030.

India's steel industry aims to grow through digitalization and sustainable production

Minister of State for Heavy Industries Bhupathiraju Srinivasa Varma said that the demand for steel will continue to increase both domestically and globally. Speaking at an event in New Delhi, Varma stressed that the steel sector is at a critical juncture and the future of the sector will focus on sustainable production to reduce carbon emissions through digitalisation.

Varma highlighted the technological advances that have brought global steel production close to 2 billion tons and increased capacity to 2.5 billion tons. He also reiterated India’s commitment to reduce carbon intensity by 45% by 2030 and achieve net zero emissions by 2070.

While the steel sector globally accounts for 8% of total emissions, with an average CO2 emission of 1.89 tons per ton, in India the steel sector contributes to 12% of the country’s total emissions, with an emission of 2.5 tons of CO2 per ton of crude steel production.

The government aims to reach 500 million tons of steel production by 2034. According to the latest figures, India’s crude steel production has increased by 35 million tons in the last four years, from 109.14 million tons in FY2019-20 to 144.30 million tons in FY2023-24.

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