Solution:According to the data released by the World Steel Association in January 2023, China is on top in the production of crude steel globally, followed by India at second place.Steel is an alloy of iron and carbon containing less than 2% carbon and 1% manganese and small amounts of silicon, phosphorus, sulphur and oxygen. (with higher carbon content, it is known as cast iron).
Growth of the sector is driven by domestic availability of raw materials such as iron ore (fifth-highest reserves of iron ore), cost-effective labour (e.g. Durgapur in West Bengal), and increased infrastructure construction and the thriving automobile and railways sectors.
Initiatives taken by the government to promote the steel sector
- National Steel Policy, 2017 envisages 300 million tonnes (MT) steel-making capacity and 160 kg per capita steel consumption by 2030-31.
- 'Make in India' initiative, supported by the PM Gati-Shakti National Master Plan: To intensify engagement with key sectors-including Railways, Defence, Housing, etc. to boost steel usage.
- Production-linked incentive (PLI) scheme for speciality steel: to stimulate the production of specialty steel within India and to reduce imports by attracting significant capital investment.
- Mission Purvodaya: Accelerated development of eastern India (Odisha, Jharkhand, Chhattisgarh, West Bengal, and Andhra Pradesh) through the establishment of integrated steel hub in Kolkata.
- Revamped Steel Import Monitoring System (SIMS) 2.0: intended to more effectively monitor steel imports and address concerns affecting the domestic steel industry.