India Steel Sector Expands Amid Green Transition

India’s steel industry is entering a larger phase of expansion, with production, domestic consumption and infrastructure demand reinforcing its position as the world’s second-largest crude steel producer. The shift matters beyond industrial output: steel demand is closely tied to roads, railways, buildings, manufacturing and urban infrastructure, while the sector faces growing pressure to reduce its carbon footprint.

India has held the second position in global crude steel production since 2018. Its share of worldwide crude steel output increased from 5.2% in 2014 to 7.9% in 2024, according to government data citing World Steel Association figures. India produced about 149.4 million tonnes of crude steel in 2024, well behind China but ahead of Japan and the United States. Domestic consumption is becoming an equally important part of the story. Finished steel consumption reached 163.7 million tonnes in 2025-26, compared with 77 million tonnes in 2014-15. The latest government data indicates that demand is being supported by construction, infrastructure, manufacturing and continuing urban expansion. That growth is already visible in current production trends. India produced 168.4 million tonnes of crude steel during 2025-26, an annual increase of more than 10%, while finished steel consumption was around 164 million tonnes.

In April-July 2026, crude steel output rose another 2.6% year-on-year to 56.3 million tonnes. For cities, the expansion carries both economic opportunity and planning risks. Higher steel availability can support housing, transport networks, industrial facilities and public infrastructure. But faster construction can also increase embodied carbon, energy use, mining pressure and waste unless material efficiency and low-carbon technologies advance alongside capacity. Industry experts say the next phase will therefore depend less on production volumes alone and more on how efficiently steel is made and used.

The government is targeting 500 million tonnes of steel production capacity by 2047, while pursuing sectoral decarbonisation in line with India’s broader net-zero pathway for 2070. For the Indian steel sector, the challenge is now to match industrial scale with environmental performance. For urban India, that means ensuring the steel-intensive infrastructure of the coming decades is not only larger, but also more resource-efficient, resilient and compatible with lower-carbon growth.

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India Steel Sector Expands Amid Green Transition