India’s steel industry is entering a strong growth phase, with the World Steel Association projecting nearly 9% demand growth in both 2025 and 2026 — the fastest among major global economies. The surge is being fuelled by widespread expansion across construction, capital goods, automobiles, and infrastructure.
Rising Consumption and Production Momentum
India’s finished steel consumption stood at 136.29 million tonnes (MT) in FY24 and increased to 150.23 MT in FY25. Between April and July 2025, consumption reached 51.45 MT, reflecting continued demand from key industries and government-led infrastructure expansion.
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Policy Support Boosts Specialty Steel Segment
The government’s Production-Linked Incentive (PLI) Scheme for Specialty Steel, with an outlay of Rs 6,322 crore, aims to add 25 MT of new specialty capacity and attract Rs 40,000 crore in investments. As of early 2025, committed investments stood at Rs 27,106 crore, with another Rs 17,000–25,200 crore expected in the second phase.
Coated Steel and Value-Added Products Drive Growth
Coated steel is emerging as a high-growth segment, with India’s coated steel market valued at $27.7 billion in 2024 and expected to reach $42 billion by 2030, growing at a 7.4% CAGR. Rising demand from warehousing, industrial roofing, and premium construction applications is driving this growth.
Industry Leaders Eye Expansion
Integrated steelmaker Abhay Ispat highlighted the growing potential of sheet metal components and colour-coated steel.
“India’s steel industry is entering a transformative phase,” said Vinesh Mehta, Chairman of Abhay Ispat. “Our focus on value-added products and expanded service networks ensures we remain aligned with national growth goals.”
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Steel Industry Poised for a Transformative Decade
With policy support, expanding infrastructure, and rising demand for value-added steel, India’s steel sector is positioned to play a central role in the country’s next industrial and employment growth wave.
