After a span of 6 years, India becomes a net steel exporter in 2013-14,
After a span of 6 years, in 2013-14, India became net steel exporter. India is probable to preserve the momentum in 2014-15 as producers are expecting to dock more overseas shipment to bridge reduced domestic consumption. During 2013-14, total Indian steel exports stood at 5.59 Million Tonnes (MT), as against imports of 5.44 MT.
India is now the world’s 4th largest steel maker. India had been a net steel importer since from 2007-08 till 2012-13. Before 2007-08, India’s exports were more than its imports.
How India turned into a net Steel Exporter after a period of 6 years?
The Key reasons were as follows:
- Rise in Exports
- Decline in Imports
- Construction sector and Automobile Industry hit by a slowdown in Economy
The Exports went up by 4.1% and Imports declined by 31.3%. Rise in Exports were driven by unpredictability of Rupee and uneven demand-supply situation in India. Imports went down primarily due to slowdown in the domestic economy.
India’s steel consumption rose by barely 0.6% in 2013-14, its lowest in 4 years, to 73.93 MT, affected by a slower growth of the domestic economy and lower imports.
India’s total steel demand is chiefly from Construction sector (60%) and Automobile Industry consumes (15%). Both sectors were hit by a slowdown in the economy.
Sensing poor demand at home, nearly all domestic steel producers, both public and private, attempted to export smartly and demonstrated growth in overseas shipments during 2013-14.