ISSDA Advocates for Separate Stainless Steel Policy to Boost India’s Industry

The Indian Stainless Steel Development Association (ISSDA) is calling for a dedicated policy to support India’s stainless steel sector. Currently, the industry is categorized under carbon steel, but ISSDA president Rajamani Krishnamurti has emphasized the need for a distinct policy. This initiative aims to address critical issues such as raw material securitisation, increasing demand, and boosting production capacities.

Raw Material Securitisation and Capacity Utilization

A major component of the proposed policy is raw material securitisation. Krishnamurti highlighted that India’s stainless steel industry has an installed capacity of 7.5 million tonnes, with more than 60% of this capacity being utilized. This indicates the potential for substantial growth, with unused capacity ready to be tapped.

Addressing Imports and Strengthening Domestic Production

Despite this capacity, 30% of India’s stainless steel demand is met through imports, primarily from China and Vietnam. Krishnamurti urged the government to level the playing field, ensuring that domestic producers can operate at full potential. This, he believes, will strengthen India’s position in the global stainless steel market and support domestic industries.

Growth in Stainless Steel Consumption

According to ISSDA data, India’s stainless steel consumption has grown significantly. In FY23, consumption was 4.02 million tonnes, rising to 4.46 million tonnes in FY24, reflecting an 11% growth. This growth highlights the increasing demand for stainless steel across sectors like automotive, construction, and consumer goods.

Impact on the Industry’s Future

The proposed policy aims to address the challenges faced by the industry, including import dependency and raw material access. By supporting domestic producers and expanding capacity, the policy could pave the way for stronger growth, greater competitiveness, and enhanced global presence for India’s stainless steel industry.

As discussions with the Ministry of Steel continue, the ISSDA is hopeful that this policy will unlock the full potential of India’s stainless steel industry.