The spread of Covid-19 has challenged the word in many ways. One primary sector that has been affected is the Stainless Steel Industry. The pandemic compelled Indian companies to cease their manufacturing and infrastructure. There has been an imperative inclination in the inventory due to the declined demand, which resulted in a decreased cost. It was highly anticipated that the stainless steel industry would witness interruptions in demand and supply. Let’s look at the pandemic’s effect on the Indian Stainless Steel Industry in detail.
Several governments had put in place strict regulations, which impacted the building sector and, in turn, affected the market. Containment measures, a freeze on consumption, and supply chain disruption have all been brought on by this pandemic. Due to the closure of machinery, acute labor shortage, factory closures, and raw material shortage, the manufacturing of stainless steel items remained closed. Additionally, because of stricter containment measures, falling raw material prices, and limited budgetary aid, emerging nations were particularly vulnerable to the epidemic.
As we all know, the virus spread rapidly across the world and India was no exception. It caused a lot of damage to the Indian economy, and the government took steps to control its spread by closing ports, banning some exports, and restricting travel to affected areas. The impact of this virus on the Indian stainless steel industry has been huge as the pandemic continued for long periods.
However, with the slow down in the pandemic, the stainless steel industry is showing signs of recovery. Being a commodity used in several key production areas, the industry is displaying signs of bouncing back.
Outlook For The Near Future
The need for predicted to increase in the coming years. The state governments are giving tax incentives to the industry, and there will likely be an increase in employment opportunities with this growth.
The IISCO has also projected that India will account for about four percent of the total global market for stainless steel by 2022 (IISCO). The industry’s growth can be seen at a CAGR of 10% in the next few years due to increasing demand from several sectors such as automotive, engineering, defense, etc., which require high-quality stainless steel material.
The impact of Covid-19 on the Indian industry has been seen in the past few years but this sector is poised for growth with the changes in the global conditions. The need for stainless steel products is increasing due to the uptick in the use of the materials in automotive manufacturing plants, construction sites, and other industries. The Indian government is also considering several measures to grow the industry and make India self-sufficient in producing stainless steel, which will significantly impact the country’s economy.
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