Need to raise steel demand to match capacity boost: Govt

The government today emphasised the need to rev up the demand for steel in the country in line with rising production capacities.

"...if you look at the domestic demand it is falling slightly short...So the issue is that the domestic demand has to be raised," Sunil Barthwal, Joint Secretary in steel ministry, said at the India Steel Summit 2017 organised by industry body Assocham.

The focus the government, he said, is to increase the demand for steel in the country as there was enough capacity.

"Now if you look at production capacities and ...figures in the country, you will find that we are growing at a very good pace...we have grown by 6.7 per cent in the calendar year up to September in the last nine months," Barthwal said.

Asserting that India has been become a net exporter of steel now, Barthwal said that Indian steel products are being exported across the world, including advanced countries.

"It is not just that we are selling (steel products) to Africa. We are selling it to the most advanced countries where they are competing with the best of the products," he said.

Other than demand, the government's focus was to make the steel sector competitive.

The government had earlier said there was a need to create steel demand in line with the planned increase in capacities.

The government had earlier said that creating demand for 300 million tonnes of steel -- the output target India is looking at by 2031 -- will be a big challenge.

India's per capita steel consumption at 61 kg is much lower than the global average of 208 kg.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)