India's Stainless Steel Consumption Climbs Up By 4.36% CAGR

India's leading stainless-steel long product producer welcomes the recently released government data indicating a Compound Annual Growth Rate (CAGR) of 4.36 per cent in the total finished stainless-steel consumption over the past five financial years. This positive trend highlights the growing demand for stainless steel across various sectors, driven by its sustainability, longevity, and affordability.

Subhash Chand Kathuria, Managing Director of Synergy Steels, stated, "The steady growth in stainless-steel consumption reflects the industry's resilience and the increasing adoption of stainless-steel in sectors such as architecture, process, and automotive industries.

This shift is evident in the changing demand for drivers from FY 2021, with process industries at 25-27 per cent, architecture at 18 to 20 per cent, and automotive and railway at 8-10 per cent.

Stainless steel's sustainability, longevity, and affordability are driving this shift. We look forward to a positive outcome of the government's review of the National Steel Policy (NSP) 2017 and the development of a dedicated stainless-steel and green steel policy, which will further enhance the industry's competitiveness and contribute to the nation's economic growth."

The government's proactive measures have created a conducive environment for the industry. Anubhav Kathuria, Director of Synergy Steels, commented, “The Production Linked Incentive (PLI) Scheme for speciality steel and the Domestically Manufactured Iron & Steel Products (DMI&SP) Policy have been instrumental in fostering growth. Looking ahead, we expect the stainless-steel market in India to grow at a CAGR of 8.80 per cent from 2024 to 2032, driven by transition finance for cleaner technologies, by a sharp shift towards EVs, and increasing demand in the automotive sector.”

With investments in process and digital technologies expected to reach USD 2.7 billion by 2030, we anticipate sustained momentum in both production and demand, supported by these advancements and a favourable policy environment."

A rise in consumption from 2.39 million tonnes in 2020-2021 to 3.75 million tonnes shows an uptick in the growing recognition of stainless steel as a metal of choice. This growth is supported by government measures protecting domestic production from imports through anti-dumping measures and initiatives to boost production. Targeted government support in these areas will be critical to advancing decarbonization goals and demand-led growth in the steel and stainless steel industries.