India’s iron and steel industry is expected to see long-term growth driven by capacity expansion, urbanisation, infrastructure development and manufacturing growth, according to a Rubix Industry Insights report by Rubix Data Sciences. The report said India has moved from being the fourth-largest producer to the second-largest producer and consumer of crude steel globally over the past decade. India ranked second globally in crude steel production and finished steel consumption in 2024 and was also the world’s largest producer of sponge iron. The country’s share of global crude steel production increased from 5 per cent in 2014 to 8 per cent in 2024, while its share of finished steel consumption also rose from 5 per cent to 8 per cent during the same period. The report said India aims to raise crude steel capacity from around 200 million tonnes per annum at present to 300 million tonnes per annum by 2030-31. Capacity is targeted to reach 400 million tonnes per annum by 2035-36 and 500 million tonnes per annum by 2047. To achieve the 400 million tonnes target, the sector is expected to require investments of nearly Rs 17 trillion. Rubix noted that India’s steel demand will be supported by housing, transport networks, industrial infrastructure and smart cities as urbanisation rises. However, the report also highlighted key challenges, including India’s dependence on imported coking coal, which currently accounts for around 90 per cent of requirements, and high carbon emissions from steel production. The report also pointed to the growing importance of green steel initiatives, including the Green Steel Mission, renewable energy adoption, scrap-based steelmaking and green hydrogen-based technologies. India introduced a formal Green Steel Taxonomy in 2024, classifying steel by carbon emission intensity and introducing a star-rating system to support decarbonisation. Rubix said continued investment in capacity expansion, green technologies and raw material security could help India become a leading supplier of value-added, low-carbon steel. The report added that export prospects may improve following the India-UK Comprehensive Economic and Trade Agreement, under which 85 per cent of Indian steel exports to the UK will be exempt from UK steel safeguard measures.