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The AIIFA Sustainable Steel Manufacturers Association, representing over 1,800 members, has urged reforms in standards, sustainability practices, and taxation to strengthen India's steel sector. Contributing nearly 47% of national steel output, the secondary steel industry supports decentralized growth, employment in semi-urban and rural areas, and India's 300-million-tonne capacity goal by 2030. Key challenges include raw material price fluctuations, rising energy costs, logistics inefficiencies, and decarbonization pressures. Experts highlight the potential of green steel, circular economy models, and streamlined GST compliance to enhance competitiveness, innovation, and global market presence.
The AIIFA Sustainable Steel Manufacturers Association has called for comprehensive reforms in standards, sustainability practices, and taxation to enhance the resilience and global competitiveness of India's steel sector. The secondary steel industry, which accounts for nearly 47% of the country's steel output, plays a crucial role in supporting decentralized industrial growth and employment in semi-urban and rural regions. It also underpins India's goal of reaching 300 million tonnes of steel capacity by 2030. However, the sector continues to face challenges such as raw material price volatility, increasing energy costs, logistical inefficiencies, and pressures to decarbonize. Advertisement
To address these issues, AIIFA, in partnership with the Steel Manufacturers Association of Maharashtra (SMAM), under the Ministry of Steel and with support from the United Nations Development Programme (UNDP), is organizing AIIFA STEELEX-2025. Often described as the "Mahakumbh of the Steel Industry," the event will be held alongside the 37th National Conference on Steel at the Bombay Exhibition Centre in Mumbai. With over 300 exhibitors and more than 3,500 delegates expected, discussions will center on decarbonization, hydrogen-based steelmaking, renewable energy integration, raw material security, circular economy initiatives, and global trade challenges including the EU's Carbon Border Adjustment Mechanism (CBAM).
Mr. Yogesh Mandhani, President of AIIFA, stressed the importance of revising BIS standards, noting that India's varied geography and climatic conditions make a uniform approach inadequate. He highlighted the need to update critical norms such as IS:1786 with region-specific considerations and encouraged the Bureau of Indian Standards (BIS) to adopt a performance-based framework that maintains strength, ductility, and durability, while allowing manufacturers flexibility to innovate and integrate advanced technologies.
He also emphasized that transitioning to green steel is both an environmental necessity and a strategic growth opportunity. Given its scrap-based production model, the secondary steel sector is well-positioned to lead the shift by adopting energy-efficient technologies, renewable power, and carbon-reduction measures. He urged the government to provide policy support through carbon credit incentives, affordable renewable energy, and targeted financial assistance for green steel projects, positioning India as a global hub for sustainable steel production.
Mr. Kamal Aggarwal, Hon. Secretary General of AIIFA, highlighted the challenge of GST compliance in scrap transactions. With many small and unorganized suppliers operating outside formal systems, the compliance burden often falls on secondary steel producers. He called for simplified and inclusive GST mechanisms to bring small suppliers into the tax framework, strengthen the circular economy, improve compliance, and boost industry competitiveness.
Concluding, Mr. Mandhani noted that India's steel sector is at a crucial turning point. By modernizing standards, accelerating the green steel transition, and streamlining GST compliance, India can develop a more resilient, competitive, and globally recognized steel industry. Coordinated efforts between the government and industry are expected to help the country meet domestic growth targets and establish itself as a leading player in the global low-carbon economy.
Source PTI
5th Jun, 2025
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