We aim to facilitate valuable interactions between Indian businesses and German counterparts.

Rajesh Nath, Managing Director, VDMA India

What specific goals and priorities are you aiming to achieve during IME 2023?

We plan to use the platform of IME 2023 to showcase German expertise, launch new initiatives, and explore potential partnerships. It’s a chance to expand business and collaborate on cutting-edge machinery and technology. Our aim is to create opportunities for mutual growth on a global scale.

As the organizers of the German Pavilion, we’re dedicated to promoting Germany’s leadership in mining equipment and machinery manufacturing. IME 2023 is a platform to highlight the expertise and innovation of our members in this sector.

At IME 2023, our top priority is connecting with industry leaders. We’re excited about the “Buyer Seller Meet,” where we’ll network with major players and gain valuable insights into the mining industry’s latest trends and innovations.

Lastly, we want to make a strong impression at the exhibition. We’re anticipating a high number of visitors, from large corporations to smaller organizations. Our goal is to raise awareness about the German Pavilion, our associated companies, and the exceptional products and services they offer.

How do you intend to assess the performance and outcomes of your initiatives for the fiscal year 2023-24?

In our role as VDMA in India, our primary focus is on fostering closer ties between the German and Indian manufacturing industries, essentially acting as a bridgehead. At IME 2023, where we are the organizers of the German Pavilion featuring 17 exhibiting companies, we aim to facilitate valuable interactions between Indian businesses in the mining and machinery sectors and German counterparts.

In addition to this, we recently hosted the 12th VDMA Mechanical Engineering Summit, which brought together over 350 industry luminaries and decision-makers. Latest technological advancements in the industry were explored and an overview of the intricate economic and industrial landscape in India was provided.

Furthermore, VDMA India conducts a range of technical seminars where we strive to bring forth the best practices offered by German companies in various domains, including machine tools, robotics and automation. These platforms serve as excellent opportunities for Indian businesses to grasp the latest technological trends and developments, fostering knowledge sharing and enabling connections with German companies that can address specific needs and requirements, often resulting in valuable business partnerships.

Moreover, these interactions offer Indian suppliers the chance to connect with European companies. This initial business engagement can potentially extend to the headquarters or other foreign subsidiaries of German and EU companies. This, in turn, not only bolsters Indo-German trade in the engineering sector but also opens doors for Indian suppliers to explore the European market.

Thus, our initiatives are designed to promote knowledge exchange, industry connections, and international business growth in the manufacturing and engineering sectors.

What is your perspective on the anticipated market dynamics in the Indian mining sector?

The anticipated market dynamics in the Indian mining sector look remarkably promising. There’s a substantial potential for new mining capacities in critical resources like iron ore, bauxite, and coal, and exciting opportunities for discovering sub-surface deposits. The sector is also benefiting from the robust demand generated by infrastructure projects, which is proving to be particularly lucrative for steel, zinc, and aluminium producers.

The proactive approach of the Indian government through key policy initiatives has been instrumental in strengthening the metals and mining sector. The National Mineral Policy, implemented in February 2019, has ushered in improvements in regulation, transparency, and a balanced approach to social and economic growth. Notably, it has granted industry status to mining activities, encouraging private sector investment. Furthermore, the policy is designed to streamline mergers and acquisitions in the mining sector, attract private sector participation in exploration, and facilitate the transfer of mineral corridors allocated for metals & mining leases.

Looking ahead, the Indian mining sector is poised for substantial growth, driven by both rising domestic demand and increased exports. These factors are expected to play pivotal roles in fuelling the industry’s expansion and contributing significantly to India’s GDP in a post-Covid environment. Moreover, India’s ambitious vision for 2047, aiming to become a global leader and the third-largest economy in the world, adds an exciting dimension to the sector. The ministry’s goal for green steel, with a 60% increase in steel production capacity through scrap to reach 300 million tons and a 50% reduction in the carbon footprint of crude steel, underscores a remarkable opportunity. Achieving these goals will require a well-orchestrated strategy that brings together finance and technology, paving the way for a sustainable and environmentally responsible mining sector. It’s an exciting journey, and India is well-positioned to lead the way in the global mining landscape.

What obstacles and difficulties do you perceive within the mining sector currently?

Currently, there are some challenges within the Indian mining sector. While coal and iron ore are significant drivers, there’s a substantial need to increase capacities in these areas and explore sub-surface deposits. Although India has ample iron ore reserves, the same isn’t true for coking or metallurgical coal, leading to a global competitiveness concern. India aims to optimize domestic reserves for coking coal to reduce iron ore to iron, but this presents a complex challenge.

The Government of India has taken steps to develop the metals and mining sector through policy initiatives and regulatory interventions, particularly in auction processes, duty levies, and land availability. The private sector has embraced technology, automation, and digitization, but there’s room for improvement.

Despite the Indian steel sector’s growth at a CAGR of 5% to 6% year-on-year, there have been hurdles. V-shaped demand recovery post-COVID-19 and government policy announcements across various sectors have led to record production and growth in 2021 and 2022. However, global supply and demand dynamics and the need for addressing environmental concerns and enhancing productivity within the mining sector are some of the issues which need to be addressed.

Hits: 9