Tokyo (NVI): As it strives to become a $5 trillion economy in next five years, India has set a target of raising the per capita consumption of steel from the present of 72 kg to 160 kg by 2030, a global forum was informed here on October 26.
“Steel demand in India has seen substantial increase and is expected to increase further in the future as India embarks on a drive to become a US $ 5 trillion economy by 2024,” Minister of Petroleum and Natural Gas & Steel Dharmendra Pradhan said at the Ministerial Meeting of Global Forum on Steel Excess Capacity here.
On the issue of the steel excess capacity, Pradhan said that steel sector in India is deregulated and is driven by market forces. As it is well known, India does not contribute or suffer from excess capacity. “We are mindful and conscious of the problems, which originate from excess capacity, and thus respect the principles laid down by this forum,” he added.
On the global situation, the minister said that Steel excess capacity had a devastating effect on the industry globally during the crisis of 2015. After a brief recovery during 2016-18, again, the global steel industry is passing through a difficult phase. Therefore, it is important that we take suitable measures to avoid a repeat of the situation of 2015.
He appreciated the members of the Global Forum on Steel Excess Capacity for putting forth considerable effort in the process of information sharing and the review.
Pradhan said that the Berlin Ministerial recommended that the market distorting subsidies and support measures which distort competition should be identified and removed. It also advised that Governments must not intervene to create such distortions in the market. He mentioned that Transparency, enhanced communication and cooperation are steps in the right direction. Global Forum may address relevant steel-related issues, as economies are linked intrinsically with this sector. “We all have collective responsibility to address the concerns of the steel sector.”, Shri Pradhan added.
On the sidelines of the meeting, the Minister also met the European Union Head of delegation Sandra Gallina, Deputy Director General of Trade, European commission.