The global steel industry is passing through a difficult phase, Union Minister for Petroleum and Natural Gas and Steel, Dharmendra Pradhan said during his address at the Ministerial Meeting of Global Forum on Steel Excess Capacity (GFSEC).
Stressing that steel excess capacity had a devastating effect on the industry globally during the crisis of 2015, the Union Minister said, "After a brief recovery during 2016-18, again, the global steel industry is passing through a difficult phase."
He emphasised that it is important to take suitable measures to avoid a repeat of the situation of 2015.
"The members' willingness to share data on capacity and information on various direct and indirect support measures deserves praise. This is a unique first-time effort. Information sharing has enabled in formulating a better response in terms of improvements for the global steel industry," said Pradhan.
The Minister said it has also improved our ability to understand the problem of global steel excess capacity.
"We should strive to make concerted efforts to ensure that all actions are in line with fair international trade practices," he said.
He added that with rapid economic and infrastructural development in India, the demand for steel has seen a "substantial increase and is expected to increase further in the future as it embarks to become a US $ 5 trillion economy by 2024."
The Minister said India is committed to spending about US $ 1.4 trillion on its infrastructure development in the next five years.
"All this augurs well for the steel demand in the country. We are determined to raise the per capita consumption of steel from its current low of 72 kg per capita to 160 kg per capita by 2030. India's demand for steel shall always be the driver of its capacity expansion," Pradhan said.
"The 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.
Stressing that addressing the concerns of the steel sector is a collective responsibility, Pradhan said, "I hope this Forum can address the issues by continuing its work by consensus in the best traditions of the G 20."
( With inputs from ANI )