India’s steel industry stands at a historic crossroads, with Prime Minister Narendra Modi unveiling a sweeping vision at the India Steel 2025 programme in Mumbai. As the world’s second-largest steel producer, India is now setting its sights on becoming a global steel powerhouse, with a target to produce 300 million tonnes of steel by 2030 under the National Steel Policy. This bold move is not just reshaping the steel sector—it is poised to transform the nation’s infrastructure, economy, and global standing in the years ahead.
India’s steel demand is forecast to grow by 8–9% in 2025, outpacing most other major economies. This robust trajectory is attributed to the government’s aggressive infrastructure push, including flagship schemes like the Pradhan Mantri Awas Yojana and the Gati Shakti Master Plan, which are driving metal-intensive construction. Additionally, rapid urbanization, increased engineering and packaging needs, and a shift toward durable, sustainable building materials are fueling long-term growth in steel consumption. As a result, Indian steel companies are experiencing strong tailwinds, with medium and small players showing particularly dynamic growth in output and rolled products.
Steel: The Backbone of India’s Economic Transformation
Prime Minister Modi’s recent address highlighted the pivotal role of a foundational material in shaping modern economies, comparing it to the “skeleton” that underpins every success story. From towering skyscrapers and sprawling highways to high-speed rail and smart cities, this material forms the backbone of India’s rapid transformation. Modi emphasized that the nation’s ambition to reach a $5 trillion economy depends on a robust, competitive sector capable of supporting such expansive growth.
Currently, India’s per capita consumption of this essential resource stands at 98 kilograms, with projections indicating a rise to 160 kilograms by 2030. This anticipated increase is a clear indicator of the country’s accelerating infrastructure development and economic momentum. The surge in demand serves as both a benchmark of national progress and a testament to the government’s effectiveness in executing large-scale, transformative projects.
To further strengthen the domestic industry, the government’s 2025 policy has introduced decisive measures to prioritize locally produced materials in public procurement. All ministries and public sector undertakings are now required to prefer products that meet the ‘Melt & Pour’ condition within India, ensuring that core production processes remain domestic. Global tenders are barred for contracts up to Rs 200 crore, reserving these opportunities for Indian suppliers and protecting them from foreign competition. A reciprocal trade clause further reinforces India’s position by barring suppliers from countries that restrict Indian firms from their own government contracts. These steps are designed to stabilize the domestic market, support primary producers, and counter the recent surge in imports.
The National Policy for 2030 lays out a blueprint for global leadership, setting an ambitious production target of 300 million tonnes by the end of the decade. This policy aims for a dramatic leap in capacity, efficiency, and innovation, while also boosting exports to 25 million tonnes and targeting a production capacity of 500 million tonnes by 2047. A key pillar of this strategy is the drive for “Zero Import” and “Net Export,” ensuring that India not only meets its domestic needs but also emerges as a leading exporter on the world stage. The government’s mandate to use only ‘Made in India’ materials in all public projects further strengthens the domestic sector and reduces reliance on imports.
Despite this positive outlook, the sector faces significant headwinds from rising imports, which surged by 24.5% in 2024. Imports from countries like China, Japan, and Korea now account for nearly 80% of inbound shipments, leading to price pressures and higher inventories, particularly in flat products. In response, authorities have proposed a 25% safeguard duty on certain products, and the Directorate General of Trade Remedies is actively investigating these import surges. Industry stakeholders are calling for further policy support to protect domestic producers and ensure continued progress toward the ambitious 300 million tonne capacity target by 2030.
Infrastructure Boom: Steel at the Heart of India’s Growth
India’s infrastructure pipeline is expanding at an unprecedented pace, with the $1.3 trillion National Infrastructure Pipeline driving massive investments in roads, railways, airports, ports, and pipelines. The PM-Gati Shakti National Master Plan integrates logistics and utility services, mapping mine areas and steel units to enhance multi-modal connectivity and efficiency.
Large-scale initiatives like the PM Awas Yojana and the Jal Jeevan Mission are fueling demand for steel, as millions of homes and critical infrastructure are built across urban and rural India. The transformation of cities into smart cities and the rapid expansion of rail and road networks are creating new opportunities for the steel sector, while government-driven projects remain the largest consumers of steel in the country.
To remain globally competitive and environmentally sustainable, India’s steel industry is rapidly adopting technological innovations. Smart manufacturing, automation, and digital twin technologies are transforming production processes, making them more efficient, cost-effective, and eco-friendly. The sector is also under pressure to align with the government’s “green steel” goals, reducing emissions and transitioning to low-carbon production methods. These advancements are not only improving productivity but are also positioning Indian steelmakers to capture greater market share in an increasingly sustainability-focused global market.
Government Policies: Catalyzing Innovation and Global Competitiveness
The Modi government’s proactive policies are making India’s steel industry globally competitive. The National Manufacturing Mission, introduced in the latest Budget, is designed to accelerate the ‘Make in India’ initiative across small, medium, and large industries. This mission opens up new avenues for the steel sector, strengthening allied industries such as manufacturing, construction, machinery, and automotive.
Importantly, India has achieved self-sufficiency in high-grade steel, which was once heavily imported for defense and strategic sectors. The steel used in India’s first indigenous aircraft carrier and the historic Chandrayaan mission was produced domestically, showcasing the nation’s technological prowess and confidence. The Production Linked Incentive (PLI) scheme has injected thousands of crores into high-grade steel production, setting the stage for further breakthroughs.
Achieving the ambitious target of 300 million tonnes of annual steel capacity by 2030 will require an estimated investment of ₹10 lakh crore. Major players like Jindal Steel and Power are ramping up capacity, with plans to increase their own output from 9.5 million tonnes to 24 million tonnes by 2028. However, the sector’s success will depend on timely greenfield mining, effective utilization of allotted mines, and continued policy support to streamline investments and approvals. The government’s focus on mining reforms and infrastructure upgrades is critical to meeting these targets and ensuring that the steel industry remains the backbone of India’s economic transformation.
Overcoming Challenges: Raw Material Security and Technological Upgrades
Despite its rapid progress, India’s steel industry faces significant challenges, particularly in securing raw materials such as nickel, coking coal, and manganese. The country remains dependent on imports for these critical inputs, impacting costs and supply chain stability. Prime Minister Modi highlighted the need to strengthen global partnerships, secure supply chains, and invest in technology upgrades to address these vulnerabilities.
The push towards energy-efficient, low-emission, and digitally advanced technologies is central to the sector’s future. The adoption of AI, automation, recycling, and by-product utilization will be crucial in enhancing productivity and sustainability. The Prime Minister called for accelerated efforts in these areas, emphasizing the importance of innovation and collaboration between Indian companies and global partners.
Mining Reforms: Unlocking India’s Resource Potential
Over the past decade, the government has implemented sweeping mining reforms, making iron ore more accessible and streamlining the allocation of mines. Prime Minister Modi stressed the urgency of utilizing allotted mines effectively and accelerating greenfield mining to ensure optimal use of the country’s resources. Delays in this process, he cautioned, could hamper the industry’s growth and competitiveness.
Coal imports, especially coking coal, remain a significant cost burden. The government is actively exploring alternatives, such as the Direct Reduced Iron (DRI) route and coal gasification technologies, to reduce dependence on imports and make better use of domestic coal resources. These measures are expected to enhance the sector’s resilience and cost-effectiveness.
Employment Generation: Steel as a Catalyst for Jobs and Innovation
The expansion of India’s steel industry holds immense potential for job creation and skill development. Prime Minister Modi called on both public and private sectors to collaborate in manufacturing, research and development, and technology upgrades. By nurturing new ideas and fostering innovation, the sector can generate millions of jobs for India’s youth and drive inclusive economic growth.
The government’s focus on developing world-class standards, improving logistics, and reducing costs is aimed at positioning India as a trusted global supplier of high-quality steel. The India Steel 2025 event serves as a platform for forging new partnerships, sharing ideas, and turning vision into action, as the nation moves towards becoming a Global Steel Hub.
India’s Global Ambitions: Towards a Steel-Strong Future
India is no longer content with domestic growth alone. The world now views India as a reliable supplier of high-quality steel, and the nation is preparing for global leadership in the sector. The government’s emphasis on world-class standards, continuous upgrades, and multi-modal transport networks is designed to enhance India’s competitiveness and global reach.
As the steel sector embraces new processes, grades, and scales, the focus is on becoming “future-ready” and expanding capabilities to meet the demands of a rapidly changing world. The collective efforts of government, industry, and global partners are laying the foundation for a resilient, revolutionary, and steel-strong India.
India’s steel revolution is more than an industrial transformation—it is a bold statement of intent, signaling the nation’s readiness to lead on the global stage. With ambitious targets, innovative policies, and a relentless focus on self-reliance and export growth, India is forging a future where steel is not just the backbone of its economy, but the foundation of its global aspirations.
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