Market Reports

Steel Industry in India

1	Quick Facts: Indian Steel Industry
2	Overview: Steel Industry in India
3	State-wise Crude Steel Production in India
4	India Steel Industry: Major Players
5	Government Initiatives
6	Megatrends in the Indian Steel Sector
7	Why Invest in India’s Steel Sector?

Quick Fact: Indian Steel Industry

The iron and steel industry drives economic growth by supporting infrastructure, manufacturing, jobs and revenue through its strong linkages across sectors.
India’s domestic steel demand is estimated to grow by 7-9% in the upcoming period, as per IBEF (India Brand Equity Foundation).
India’s steel capacity is set to rise to 240–250 MT by 2030, moving closer to the government’s 300 MT target.
As of 2024, India is the world’s second-largest producer of crude steel with a production capacity of 179 MT.
The sector is now predominantly driven by private companies, with their share in the total capacity rising to ~82%.
India’s steel production grew steadily at a CAGR of 6% between 2019 and 2023.
Over the past five years, global steel capacity has increased by nearly 62 million tons and India contributed around 6% to this growth.
In India, per capita steel consumption has doubled from 59 kg in 2013-14 to 119 kg in 2022-23.

Overview: Steel Industry in India

In recent years, India’s steel sector has grown rapidly, placing the country among the top steel producers in the world. Today, India is the second-largest producer of steel globally, showing its strong position in the international market and its growing contribution to industrial development. Metals have always played a key role in driving industrial growth and among them, steel is one of the most important. Steel is used both as a basic building material and in the production of many other goods, making it a strong indicator of a country’s economic progress. The steel industry supports several major sectors such as construction, infrastructure, automotive, engineering and defence.

Between 2019 and 2023, the growth in India’s steel production was remarkable. During this period, India’s steel output grew at an impressive annual rate of 6%, far outpacing China’s 1% growth and global steel production, which saw a 1% decline. Going forward, it is expected that India and ASEAN will account for about 89% of Asia’s new steelmaking capacity. India’s crude steel production grew from 110 MT in 2019-20 to 128 MT in 2022-23 to 145 MT in 2023-24, registering a robust growth of 13.4% from 2023-24. As a result, the utilization of steel production capacity rose to 81%.

India’s consumption of finished steel increased from 101 MT (Million Tons) in 2019-20 to 137 MT in 2023-24, showing strong domestic demand with a growth of 13.7% from the previous year. Industry forecasts, including a modest 6% annual growth in steel demand until FY27, indicate that India’s steel sector is ready to meet and possibly exceed this demand.

Year	Crude Steel Production (in Mn Tons)	Finished Steel Production (in Mn Tons)	Consumption (in Mn Tons)
2019-20	109.1	102.6	100.1
2020-21	103.5	96.2	94.8
2021-22	120.2	113.6	105.7
2022-23	127.2	123.2	119.8
2023-24	144.3	139.2	136.2

State-wise Crude Steel Production in India

Odisha, long recognized as the nation’s top steel producer, is projected to see a 6% rise in production during the first quarter of FY25, reaching 6.6 million tons, up from 6.2 million tons in the same period last year.
Coming in second, Jharkhand’s steel output is estimated to grow by 9%, reaching 5.1 million tons compared to 4.7 million tons in Q1 FY24.
Chhattisgarh is set to secure third place with 4.6 million tons, up from 4.3 million tons.
Maharashtra is expected to rank fourth, with a provisional production of 4.1 million tons (previously 3.8 million tons).
Karnataka follows closely at 3.8 million tons, rising from 3.5 million tons.
West Bengal is on track for a 12% growth, likely reaching 2.9 million tons versus 2.6 million tons in the previous year.
Gujarat rounds out the top seven, with an anticipated output of 2.6 million tons, up from 2.3 million tons.

India Steel Industry: Major Players

Tata Steel:
Tata Steel ranks among the world’s most diversified integrated steel manufacturers, with a crude steel production capacity of 35 MTPA (Million Tons Per Annum).
Jindal Steel and Power Limited
JSPL is a leading Indian industrial conglomerate with a strong steel, mining and infrastructure footprint. The company delivers high-quality, cost-efficient steel products through backward and forward integration.
Steel Authority of India Limited
SAIL, a Central Public Sector Enterprise (CPSE), is India’s largest steel producer, with an annual output of approximately 17.4 million tons of hot metal and 16.1 million tons of crude steel.
Essar SteelIndia Limited –
ESIL is an integrated steel producer with an installed steel-making capacity of 9.6 MTPA.
JSW
JSW Steel is one of India’s leading manufacturers and exporters of coated steel with a capacity to produce 1.8 MTPA.

Government Initiatives

PLI scheme for Specialty Steel

To be eligible for benefits under the scheme, companies must be involved in full steel production, from start to finish. Under the scheme, the government offers incentives ranging from 3-4% based on how much a company invests and how much steel it produces.
In March 2025, the Ministry of Steel signed agreements for the second round of the scheme (called PLI Scheme 1.1) to encourage more participation, responding to requests from the industry for more flexibility.
PLI Scheme 1.1, which will run from FY 2025-26 to FY 2029-30, includes the same five product categories as the original scheme: coated/plated steel, high-strength/wear-resistant steel, specialty rails, alloy steel products, steel wires and electrical steel. These products are used in various industries such as home appliances, automobiles, transformers and more.
The scheme will operate with the original budget of INR 6,322 crore and companies that meet the production and investment targets will receive financial incentives.

National Steel Policy 2017:

The National Steel Policy (NSP) 2017 envisions building a self-reliant steel industry that is technologically advanced, globally competitive and supports inclusive growth.
Its key goals include increasing crude steel production capacity to 300 million tons and raising per capita steel consumption to 160 kg by 2030-31.
The policy also aims to fully meet domestic demand for high-grade automotive, electrical and special steel, reduce coking coal imports to 50% and make India a net exporter of steel by 2025-26.
It encourages efficient, safe and sustainable steel production and promotes high-quality standards.
NSP 2017 addresses several key areas such as steel demand and capacity, raw materials, infrastructure, quality, technology, MSMEs, value-added products, environmental and safety standards, trade, financial risks and research through the Steel Research & Technology Mission of India.

Steel Scrap Recycling Policy:

Promotes a circular economy in the steel sector by encouraging recycling and resource efficiency.
Clears End-of-Life Vehicles (ELVs) from cities and reuses ferrous scrap to reduce congestion and waste.
Encourages organized, safe and eco-friendly processing of scrap materials.
Aims to reduce import dependence by producing high-quality ferrous scrap domestically.
Supports scientific handling of recyclable materials, including non-ferrous scraps, through authorized facilities.
Implements the 6Rs principles – Reduce, Reuse, Recycle, Recover, Redesign and Remanufacture.
Ensures safe waste management from dismantling and shredding, following environmental rules set by the Ministry of Environment, Forest and Climate Change (MoEFCC)
Build a formal recycling system for the collection, dismantling and processing of end-of-life products.

Megatrends in the Indian Steel Sector

Sustainability and Green Steel Investments

India’s steel industry is increasingly focusing on green technologies, with major players investing in hydrogen-based direct reduced iron and electric arc furnace technologies to reduce carbon emissions.
The government is also driving initiatives like the “National Clean Energy Fund,” which could accelerate the adoption of cleaner technologies, enhancing long-term industry sustainability.

Consolidation and Strategic Mergers

The Indian steel industry is witnessing consolidation as larger players acquire smaller ones to improve scale, efficiency and market share.
The trend is driven by the need for increased capacity, better economies of scale and cost efficiencies.

Increased Focus on Value-Added Steel Products

India is shifting towards the production of value-added steel products like high-strength steel, specialty alloys and advanced automotive steels, catering to the growing demand from the automotive, construction and infrastructure sectors.
The trend is being driven by the need for innovation and higher margins, with demand for advanced steel products growing in India’s rapidly expanding industrial landscape.

Why Invest in India’s Steel Sector?

India is the World’s Second-Largest Steel Producer

India produced ~145 million tonnes of crude steel in 2024, second only to China.
The country’s production capacity is expected to reach 300 million tonnes by 2030 under the National Steel Policy.
Consistent growth in output with a 6% CAGR from 2019 to 2023 reflects a strong and stable industry.
India also ranks among the top 5 in global steel consumption, showing strong domestic demand.

Surging Domestic Demand Driven by Infrastructure and Manufacturing

Steel demand is rising due to large-scale infrastructure projects like Bharatmala, Gati Shakti and Smart Cities.
The government aims to spend INR 112 trillion on infrastructure through 2025, driving steel consumption.
Sectors such as real estate, automotive, railways and construction are major steel consumers.
Per capita steel consumption in India doubled over the past decade and still has room to grow.

Government Policies Encouraging Investment and Expansion

The National Steel Policy 2017 sets a clear roadmap for capacity, quality and sustainability goals.
PLI Schemes for specialty steel offer incentives worth INR 63 billion to promote value-added production.
Ease of doing business reforms and 100% FDI allowance in the steel sector attract global players.
Focus on import substitution and building self-reliance supports domestic industry growth.

Strong Export Potential and Global Competitiveness

India is a net exporter of steel, supplying to over 110 countries worldwide.
High-quality flat and long steel products make Indian exports competitive in Asia, Europe and the Middle East.
Rising demand from developing nations and energy transition technologies increases export opportunities.
Trade agreements and regional partnerships further boost export potential.

Market Reports

Steel Industry in India

Quick Fact: Indian Steel Industry

Overview: Steel Industry in India

State-wise Crude Steel Production in India

India Steel Industry: Major Players

Government Initiatives

Megatrends in the Indian Steel Sector

Why Invest in India’s Steel Sector?

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