【Ferro-alloys.com】: India's steel production growth rate has surpassed China and the global market

India reached its target steel production capacity of 205 million tons per year in the 2024/2025 fiscal year. According to a report by MP Financial Advisory Services LLP (MPFASL), the country is steadily moving towards its strategic goal of 300 million tons per year by the 2030/2031 fiscal year.

The Indian steel industry, the second largest in the world after China, is showing some of the highest growth rates. Between 2016 and 2024, the average annual growth in steel production in India was about 5%, while in China it was 2.76% and the global average was only 1.77%. Moreover, after 2020, growth in India accelerated to 8% per year, while Chinese production began to decline.

Currently, projects are underway to expand capacity by another 167 million tons by 2030. The main burden falls on the private sector, which accounts for 83% of steel production in India. The state, in turn, is implementing support policies: from providing raw materials to stimulating the production of specialized steels through the PLI program.

Among the main challenges for the sector are dependence on coking coal imports (85%), a shortage of scrap metal, high carbon intensity, and competition from cheap imports. However, India is betting on modernizing production, green technologies, and developing the domestic market, where per capita steel consumption (93.4 kg) lags significantly behind the global average (over 219 kg) but is growing rapidly.

“India’s steel breakthrough is not just about volume. It’s about economic independence, energy security, and climate responsibility,” said MPFASL founder Mahendra Patil.

• [Editor:Alakay]