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India Advances Towards Self Reliant Steel Sector
Steel

India Advances Towards Self Reliant Steel Sector

India has been the world's second largest steel producer since 2018, and its share of global crude steel production rose from five point two per cent in 2014 to seven point nine per cent in 2024. Finished steel consumption climbed from 77 million tonnes (mn t) in 2014–15 to 163.7 million tonnes in 2025–26, reflecting infrastructure expansion and urbanisation. These shifts underscore steel's expanding contribution to industrial growth and self-reliance.

Crude steel production reached 168.4 million tons in 2025–26, rising from 127.2 million tons in 2022–23 and 152.2 million tons in 2024–25, with a compounded annual growth rate of approximately nine per cent between 2021–22 and 2025–26. Output in March 2026 increased by two point two per cent year on year, while the cumulative index for fiscal 2025–26 expanded by nine point one per cent. Core segments such as hot metal, pig iron and sponge iron also recorded gains.

Trade flows signalled stronger domestic capacity, with exports up 29.1 per cent in March 2026 and imports down nine point five per cent. The Production Linked Incentive scheme has supported investment and value addition: Rs 230.22 billion (bn) of investment was realised, supporting two point four mn t of speciality steel output and 13,264 direct jobs. Incentives of Rs 2.36 bn have been disbursed, 24 mn t of speciality capacity created and import substitution of Rs 60 bn achieved. The PLI 1.2 round carries committed investments of Rs 118.87 bn and capacity additions of eight point two nine million tons.

Policy measures have reduced import dependence, including zero basic customs duty on key inputs, a 12 per cent safeguard duty on select flat products and reforms to boost scrap recycling and domestic coking coal. Mission Coking Coal targets 140 mn t by fiscal 2029–30, and procurement preferences and quality control orders aim to deepen domestic value chains. With plans to expand capacity towards 500 million tonnes by 2047 and pursue decarbonisation to meet net zero by 2070, the government positions steel at the centre of long-term resilience.

India has been the world's second largest steel producer since 2018, and its share of global crude steel production rose from five point two per cent in 2014 to seven point nine per cent in 2024. Finished steel consumption climbed from 77 million tonnes (mn t) in 2014–15 to 163.7 million tonnes in 2025–26, reflecting infrastructure expansion and urbanisation. These shifts underscore steel's expanding contribution to industrial growth and self-reliance. Crude steel production reached 168.4 million tons in 2025–26, rising from 127.2 million tons in 2022–23 and 152.2 million tons in 2024–25, with a compounded annual growth rate of approximately nine per cent between 2021–22 and 2025–26. Output in March 2026 increased by two point two per cent year on year, while the cumulative index for fiscal 2025–26 expanded by nine point one per cent. Core segments such as hot metal, pig iron and sponge iron also recorded gains. Trade flows signalled stronger domestic capacity, with exports up 29.1 per cent in March 2026 and imports down nine point five per cent. The Production Linked Incentive scheme has supported investment and value addition: Rs 230.22 billion (bn) of investment was realised, supporting two point four mn t of speciality steel output and 13,264 direct jobs. Incentives of Rs 2.36 bn have been disbursed, 24 mn t of speciality capacity created and import substitution of Rs 60 bn achieved. The PLI 1.2 round carries committed investments of Rs 118.87 bn and capacity additions of eight point two nine million tons. Policy measures have reduced import dependence, including zero basic customs duty on key inputs, a 12 per cent safeguard duty on select flat products and reforms to boost scrap recycling and domestic coking coal. Mission Coking Coal targets 140 mn t by fiscal 2029–30, and procurement preferences and quality control orders aim to deepen domestic value chains. With plans to expand capacity towards 500 million tonnes by 2047 and pursue decarbonisation to meet net zero by 2070, the government positions steel at the centre of long-term resilience.

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