Why it matters
• In FY 2024-25 India’s crude steel production reached approximately 151.1 million tonnes as domestic capacity neared 200 million tonnes.
• Finished steel consumption is projected to grow by around 8-9 per cent annually over 2025 and 2026, driven by infrastructure and urbanisation.
• Imports of finished steel remain high even as production expands, suggesting that domestic mills are not fully capturing the rising demand nor value-added segments.
Key data snapshot
| Metric | Value | Period | Source |
|---|---|---|---|
| Crude steel production (India) | 151.1 MT | FY 2024-25 | ETManufacturing.in+1 |
| Installed steelmaking capacity | ~200 MT | FY 2024-25 | ETManufacturing.in+1 |
| Growth in steel consumption | ~9% y/y | 2025-26 forecast | The Economic Times |
| Finished steel consumption (FY 2023-24) | 136 MT | FY 2023-24 | India Brand Equity Foundation+1 |
The import and value-chain challenge
• Data for April-February FY 2024-25 shows finished steel consumption at 137.85 million tonnes, up about 11.3 per cent year-on-year.
• India remains a net importer of steel; although capacity is increasing the competitiveness of domestic producers is challenged by global oversupply and import pressure.
• While capacity is growing, adding roughly 13 million tonnes in FY 2025 per some industry estimates, the concern shifts from capacity to utilisation and value addition.
Strategic bottlenecks
• The target of 300 million tonnes of crude steel capacity by 2030 is still in place but achieving it meaningfully (with utilisation and value-add) remains a challenge.
• Downstream segments (specialty steel, coated products, green steel) still lag behind and need policy attention and technology investment.
• Input-chain vulnerabilities (met-coke, scrap, power, logistics) are increasingly cited as constraints in expansion.
What needs to happen
• Shift policy emphasis from just growth in tonnes to growth in value addition: incentivise speciality steels, recycling, green steel production and higher-margin end-uses.
• Strengthen trade‐remedy tools and import curbs targeted at low-value exports that undermine domestic capacity building.
• Enhance input-security: ensure reliable supply of key raw materials, streamline logistics and support upgrades in scrap and secondary steel sectors.
• Link capacity expansion with demand pull: secure offtake from infrastructure, rail, automotive and export markets so that the added capacity is not idle.
Final thought
India’s steel sector remains one of the brightest industrial growth stories in the world. Yet the next phase of success won’t simply come from more tonnes. It will come from producing better steel, using inputs more efficiently, capturing more value domestically and defending the ecosystem from cheap imports that erode margins. The challenge is real and the time to act is now.
Source References:
IBEF, “Indian Steel Industry Report August 2025”. India Brand Equity Foundation+1
Reuter, “India confident of achieving steel production target by 2030”, April 24 2025. Reuters+1
Ministry of Steel Monthly Economic Report April-February 2025. Steel Ministry
Disclaimer:
The data and insights presented in this article are compiled from publicly available government and industry sources including the Ministry of Steel, IBEF, CRU and others. Markintel has independently analysed and interpreted this information for research and educational purposes; it does not represent the official views of any cited organisation.
