New Delhi, May 5: India’s steel sector is witnessing sustained growth and moving steadily towards greater self-reliance, supported by strong domestic demand, policy reforms and increasing global competitiveness, according to an official background note released on Tuesday.
The sector, identified as a key “sunrise industry,” has maintained its position as the world’s second-largest steel producer since 2018. India’s share in global crude steel production has risen significantly from 5.2 percent in 2014 to 7.9 percent in 2024, reflecting its expanding footprint in the international market.
Domestic consumption has also surged, more than doubling over the past decade. Finished steel consumption increased from 77 million tonnes in 2014–15 to 163.7 million tonnes in 2025–26, driven by infrastructure expansion, rapid urbanisation, and growth in manufacturing sectors. Production of finished steel stood at 160.9 million tonnes in 2025–26, marking a 9.7 percent increase over the previous year.
Crude steel production has shown consistent growth, reaching 168.4 million tonnes in 2025–26, compared to 88.98 million tonnes in 2014–15. This represents a compound annual growth rate of around 9 percent in recent years. Output across related segments such as hot metal, pig iron and sponge iron has also recorded steady increases, indicating broad-based expansion across the value chain.
India’s steel trade performance has improved, with exports rising sharply while imports have declined. In March 2026, steel exports grew by 29.1 percent year-on-year, while imports dropped by 9.5 percent. Over the full financial year, finished steel exports increased by 35.8 percent, while imports declined by 46.47 percent, underscoring improved domestic capacity and reduced reliance on foreign supply.
Government initiatives have played a key role in driving this growth. Under the Production Linked Incentive (PLI) scheme for specialty steel, investments worth ₹23,022 crore have been realised, resulting in the production of 2.4 million tonnes of specialty steel and the creation of over 13,000 jobs. Additional investment commitments under subsequent phases of the scheme are expected to further boost capacity and technology upgrades.
Policy measures such as the Domestically Manufactured Iron and Steel Products (DMI&SP) policy and the “melt and pour” rule are aimed at strengthening domestic manufacturing and reducing import dependence. Efforts are also underway to improve raw material security, logistics infrastructure and quality standards through mechanisms such as Steel Quality Control Orders and the Steel Scrap Recycling Policy.
The government has set an ambitious target of achieving 500 million tonnes of steel production capacity by 2047. Currently, India has achieved about 66 percent of the production target outlined in the National Steel Policy 2017.
At the same time, the sector is undergoing a transition towards sustainability. India has committed to achieving net-zero emissions by 2070, with a focus on green steel production, adoption of renewable energy, and technologies such as carbon capture and green hydrogen. As of March 2026, 89 steel units have received green steel certification.
Infrastructure development continues to drive demand, accounting for nearly 68 percent of total steel consumption, followed by engineering, packaging and automobile sectors.
With continued policy support, rising domestic demand, and a clear focus on sustainability, India’s steel industry is expected to play a central role in the country’s long-term economic growth while strengthening its position as a global steel powerhouse.
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