India's Steel Sector Self-Reliance Progress

India’s Steel Sector: Key Developments and Data

Overview

• Global Standing: India is the world’s second-largest steel producer since 2018, accounting for 7.9% of global crude steel production (up from 5.2% in 2014).
• Consumption Growth: Finished steel consumption increased from 77 million tonnes (MT) in 2014-15 to an estimated 163.7 MT in 2025-26.

Economic Indicators

• Production Targets: India aims for a steel production capacity of 500 MT by 2047.
• Employment: Government initiatives have created over 13,000 jobs in the specialty steel sector.
• Production Growth: Crude steel production rose from 43.44 MT in 2004-05 to 168.4 MT in 2025-26, with a CAGR of ~9% between 2021-22 and 2025-26.

Government Schemes and Policies

• Production Linked Incentive (PLI) Scheme:
  • Launched in 2021 with a financial outlay of ₹6,322 crore, targeting specialty steel production.
  • Achievements include ₹23,022 crore investment and 2.4 million tonnes of specialty steel produced.
• National Steel Policy (2017):
  • Aims for crude steel capacity of 300 MTPA by 2030-31 and a per capita finished steel consumption increase to 158 kg.
  • Targets to reduce coking coal import dependency from 85% to 65% by 2030-31.

Environmental Initiatives

• Decarbonisation Goals:
  • Commitment to achieve net-zero emission intensity by 2070, with green steel production emphasizing renewable energy and green hydrogen.
  • The Green Steel Taxonomy, introduced in 2024, defines 'green steel' based on CO2 emissions.
  • As of March 2026, 89 steel units received green steel certification.

Trade Performance

• Exports and Imports:
  • Steel exports rose by 29.1% year-on-year in March 2026, while imports declined by 9.5%.
  • Major export destinations include Vietnam, Belgium, and Taiwan, which account for over 50% of total finished steel exports.

Quality Control and Standards

• Steel Quality Control Orders (QCOs):
  • Mandate compliance with BIS standards, banning sub-standard products and ensuring quality in the domestic market.
  • A total of 143 QCOs for 723 products have been enforced as of December 2025.

Infrastructure and Logistics

• PM GatiShakti Masterplan:
  • Supports logistics planning by mapping steel units and their capacities to enhance infrastructure development.
• Identification of Steel Zones:
  • The government is fast-tracking key logistics projects across 12 major steel zones to improve connectivity and support sector growth.

International Agreements and Collaborations

• FDI Policies:
  • Foreign Direct Investment in the steel sector increased by 120% from 2014 to 2024, with 100% FDI under the automatic route.
• Free Trade Agreements: Efforts to enhance market access through agreements with the UK, EU, and others.

Future Outlook

• Technological Integration:
  • Initiatives like the AI in Steel Pavilion aim to leverage technology for operational challenges across the steel value chain.
• Sustainability Focus:
  • Emphasis on R&D for low-carbon technologies, recycling policies, and promotion of indigenous technologies to bolster self-reliance and sustainability in the steel sector.

This summary encapsulates the significant advancements and strategies within India's steel sector, emphasizing its contribution to economic growth, sustainability, and self-reliance in line with national policies and global standards.