India has emerged as a global outlier in steel consumption, reporting a robust double-digit growth of 13.5% in the first half of FY2024-25, even as the international market faces a slowdown. According to the Ministry of Steel, the nation’s surging demand for steel underscores its expanding infrastructure and industrial activity, positioning it as a critical player in the global steel landscape.
With conservative estimates placing annual demand growth at 10%, the country’s steel demand is projected to reach 265 million tonnes by 2030. To meet this requirement, India must expand its production capacity from the current 180 million tonnes to 300 million tonnes, necessitating an investment of ₹10 lakh crore ($120 billion). If these capacity additions are not realised, India risks becoming a net importer of steel, which could compromise its infrastructure development agenda. India’s steel imports have already surged by 41.3% in H1 FY2024-25 compared to the previous year, rising from 3.32 million tonnes to 4.73 million tonnes. Although imports account for a small fraction of total consumption, the influx of cheaper steel has exerted downward pressure on domestic prices, affecting both large integrated steelmakers and smaller producers.
Small steel producers, who contribute over 40% of the nation’s output, are particularly vulnerable. Of the 144.3 million tonnes of steel produced in FY2023-24, 58.93 million tonnes were attributed to over 1,000 small-scale producers, while 85.37 million tonnes came from integrated players. To safeguard the domestic market, the Bureau of Indian Standards (BIS), in collaboration with the Ministry of Steel, has implemented stringent quality control measures. Fifty-one BIS standards covering 1,376 steel grades have been mandated, ensuring that both domestic and imported steel adhere to quality benchmarks. As India targets 300 million tonnes of production by 2030 under its National Steel Policy, the focus remains on balancing capacity expansion with stringent quality standards to maintain its upward trajectory in steel consumption and production.
