The per capita consumption of stainless steel in India has reached 2.5 kg-mark, industry body ISSDA said on Monday.
In 2010, the per capita consumption of steel was 1.2 kg and in 2019 the figure stands at 2.5 kg, registering a rise of over 100 per cent during the period, Indian Stainless Steel Development Association (ISSDA) said in a statement.
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"Growth rate of stainless steel demand in India is to the tune of 6-7 per cent CAGR, which is also among the highest in the world, as stainless steel demand is directly linked to economic growth. Stainless steel not only has a low life cycle cost, but also improves overall quality of life," the statement quoted Minister of State for Steel Faggan Singh Kulaste as saying.
ISSDA President K K Pahuja said the Association has been promoting new stainless steel applications across the spectrum of industries since its inception. India is now the fastest growing market for stainless steel.
With the achievement of 2.5 kg per capita consumption level, he said, India has reached an inflexion point and entered the league of countries where stainless-steel consumption is recorded on the higher side.
ISSDA further said the local stainless-steel market is the fastest growing market in the world with a CAGR of 8-9 per cent and "(as a result of) growing trade protectionist sentiment across the globe, the growing Indian market has become an easy target for dumping of the surplus production from ASEAN producers."
Low entry barriers for goods due to operational FTAs with ASEAN, Japan and Korea distort the demand-supply dynamic and adversely impact the domestic manufacturers, it said.
"Almost half of the industries in the MSME sector have been particularly hit by cheaper imports. Further, a higher input cost on account of import duty on key raw materials, like stainless steel scrap and Ferro nickel, makes Indian product less competitive than its global peers.
"ISSDA has flagged these issues with the government and is working to remove the growth hurdles for domestic industry," it said.
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