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Released July 23, 2025 | NEW DELHI
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Researched by Industrial Info Resources (Sugar Land, Texas)--India's steel industry is picking up momentum, solidifying its position as the second-largest producer of crude steel in the global market. With an estimated annual production of 151 million tons of crude steel in fiscal year (FY) 2024-25, the steel industry is expected to scale up production up to 300 million tons by FY 2030-31.
Industrial Info is tracking more than 2,000 projects worth more than US$40 billion of investment across India's steel-manufacturing sector. About 86% of the total expenditure is toward expanding the capacity of existing steel mills through unit addition projects.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for a full list of detailed project reports.
India's infrastructure also is growing, with increased construction activities and various government schemes, such as the National Steel Policy, Gati Shakti and Smart Cities Mission, significantly boosting demand for steel. Construction and infrastructure sectors alone contribute about 40% of steel use in India, and manufacturing industries, including the automotive sector, account for another 30%.
However, despite this massive production capacity, India became a net importer of finished steel in FY 2024-25, as imports reached 9.5 million metric tons, compared with 4.9 million metric tons in exports. This contradiction reveals a critical gap in India's steel value chain. While crude steel, the raw form obtained after melting iron ore, is produced abundantly, India struggles to ramp up the production of a wide variety of higher-grade and specialty finished steels for its domestic needs.
As a result, finished steel availability in India is heavily reliant on imports, primarily from Asian suppliers such as China, Japan and South Korea. According to Reuters, China's steel exports to India surged by 36.7% to 1.4 million metric tons over the period of April-September 2024. Hot-rolled coils made up 44% of total finished steel shipments, with China supplying a range of products, including stainless steel, galvanized sheets and various bars and pipes. Price advantage is the primary driver for these imports, as foreign suppliers, mostly from China, offer finished steel at cheaper rates, and that makes importing more economical for Indian buyers.
To reduce rising imports, India implemented a 12% safeguard duty in April 2025. This measure has led to a 27.6% drop in overall finished steel imports in April-May 2025, with imports from China falling 47.7% and those from Japan 65.6%. Nonetheless, China, Japan and South Korea still represent 74.4% of India's finished steel imports.
To boost domestic steel production, the Ministry of Steel launched the PLI Scheme for Specialty Steel to incentivize local manufacturing of high-grade steel and revised the Domestically Manufactured Iron& Steel Products DMI&SP policy (DMI&SP) to mandate the use of steel "melted and poured" in India for all government projects.
In response, Indian steel producers are ramping up investments to upgrade their finishing capabilities by expanding production capacity, adopting automation and advanced metallurgical technologies.
ArcelorMittal is investing about US$5.55 billion across 59 projects. One of its major projects, totaling about US$1 billion of investment, is focused on establishing a new blast furnace facility in Paradip, Odisha, to produce 24 million metric tons of hot metal annually.
Subscribers can learn more from a detailed plant profile and project report.
AM/NS India, a joint venture between ArcelorMittal and Japan's Nippon Steel, is planning a 17.8 million-ton steel project in Andhra Pradesh in two phases: a 7.3 million-ton-per-annum capacity in Phase I and a 10.5 million-ton-per-annum expansion in Phase II, aiming for completion by 2030. Subscribers can learn more from a detailed plant profile and click here for a list of detailed project reports.
About 70% of all these projects are facing a kick-off slippage of more than two years. While India has established a strong foundation in crude steel production, moving up the value chain to enhance finished steel output remains a key challenge. With continued government support and increasing private investments, efforts are underway to reduce import dependence and strengthen domestic finishing capabilities.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Industrial Info is tracking more than 2,000 projects worth more than US$40 billion of investment across India's steel-manufacturing sector. About 86% of the total expenditure is toward expanding the capacity of existing steel mills through unit addition projects.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can click here for a full list of detailed project reports.
India's infrastructure also is growing, with increased construction activities and various government schemes, such as the National Steel Policy, Gati Shakti and Smart Cities Mission, significantly boosting demand for steel. Construction and infrastructure sectors alone contribute about 40% of steel use in India, and manufacturing industries, including the automotive sector, account for another 30%.
However, despite this massive production capacity, India became a net importer of finished steel in FY 2024-25, as imports reached 9.5 million metric tons, compared with 4.9 million metric tons in exports. This contradiction reveals a critical gap in India's steel value chain. While crude steel, the raw form obtained after melting iron ore, is produced abundantly, India struggles to ramp up the production of a wide variety of higher-grade and specialty finished steels for its domestic needs.
As a result, finished steel availability in India is heavily reliant on imports, primarily from Asian suppliers such as China, Japan and South Korea. According to Reuters, China's steel exports to India surged by 36.7% to 1.4 million metric tons over the period of April-September 2024. Hot-rolled coils made up 44% of total finished steel shipments, with China supplying a range of products, including stainless steel, galvanized sheets and various bars and pipes. Price advantage is the primary driver for these imports, as foreign suppliers, mostly from China, offer finished steel at cheaper rates, and that makes importing more economical for Indian buyers.
To reduce rising imports, India implemented a 12% safeguard duty in April 2025. This measure has led to a 27.6% drop in overall finished steel imports in April-May 2025, with imports from China falling 47.7% and those from Japan 65.6%. Nonetheless, China, Japan and South Korea still represent 74.4% of India's finished steel imports.
To boost domestic steel production, the Ministry of Steel launched the PLI Scheme for Specialty Steel to incentivize local manufacturing of high-grade steel and revised the Domestically Manufactured Iron& Steel Products DMI&SP policy (DMI&SP) to mandate the use of steel "melted and poured" in India for all government projects.
In response, Indian steel producers are ramping up investments to upgrade their finishing capabilities by expanding production capacity, adopting automation and advanced metallurgical technologies.
ArcelorMittal is investing about US$5.55 billion across 59 projects. One of its major projects, totaling about US$1 billion of investment, is focused on establishing a new blast furnace facility in Paradip, Odisha, to produce 24 million metric tons of hot metal annually.
Subscribers can learn more from a detailed plant profile and project report.
AM/NS India, a joint venture between ArcelorMittal and Japan's Nippon Steel, is planning a 17.8 million-ton steel project in Andhra Pradesh in two phases: a 7.3 million-ton-per-annum capacity in Phase I and a 10.5 million-ton-per-annum expansion in Phase II, aiming for completion by 2030. Subscribers can learn more from a detailed plant profile and click here for a list of detailed project reports.
About 70% of all these projects are facing a kick-off slippage of more than two years. While India has established a strong foundation in crude steel production, moving up the value chain to enhance finished steel output remains a key challenge. With continued government support and increasing private investments, efforts are underway to reduce import dependence and strengthen domestic finishing capabilities.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
