The Indian government is encouraging all domestic manufacturers and other businesses to reduce their dependence on imports and instead to rely on domestic sources of raw material. The long-anticipated vehicle scrappage policy will be part of the government’s campaign of “Atmanirbhar Bharat”, or “Self-Reliant India”. This is expected to promote domestic car dismantling and shredding.
The Indian economy and growth rate remain under severe pressure. Overall demand is not picking up and there are supply-side constraints. Many metropolitan authorities are facing daily increases in COVID-19 cases with which healthcare systems are unable to cope.
Steel demand and production have rebounded in other South Asian countries such as Pakistan and Bangladesh. With the monsoon rains now subsiding, they are expected to enjoy a stronger last quarter to the year when compared to India.
Nathani Group of Companies (IND), Vice-President of the BIR Ferrous Division