Chemicals Industry Today
India Iron Steel Market Growth to Record CAGR of 4.3% up to 2034
India’s iron and steel industry stands as one of the most vital pillars of its industrial economy, driving infrastructure, manufacturing, construction, and defense sectors. As one of the world’s top producers of crude steel, India’s journey from a developing nation to a global steel powerhouse reflects its rapid industrialization, innovation, and strategic vision for self-reliance. The iron and steel sector not only fuels economic development but also plays a key role in supporting the “Make in India” initiative and other national growth programs.
The India Iron Steel Market is projected to grow from 205.15 USD Billion in 2024 to 326.06 USD Billion by 2035. The market is expected to witness a compound annual growth rate (CAGR) of 4.3 percent from 2025 to 2035.
Historical Evolution of India’s Iron and Steel Industry
India’s tryst with iron and steel dates back to ancient times. Historical records suggest that Indian blacksmiths were producing high-quality steel — known as Wootz steel — as early as the 3rd century BCE, which was traded across Asia and Europe. The modern era of the Indian steel industry began in the early 20th century with the establishment of Tata Iron and Steel Company (TISCO) in 1907 in Jamshedpur. This marked the beginning of organized steel production in the country.
Post-independence, India’s policymakers recognized steel as a strategic sector for economic development. Public sector enterprises such as Steel Authority of India Limited (SAIL), Rashtriya Ispat Nigam Limited (RINL), and others were established to meet the growing domestic demand. Over the decades, the industry has undergone a significant transformation — from being dominated by the public sector to witnessing an influx of private players like JSW Steel, Jindal Steel and Power, and Essar Steel, which introduced new technologies and expanded capacity.
Current Scenario: A Global Steel Powerhouse
Today, India is the second-largest producer of crude steel in the world, only behind China. According to the World Steel Association, India’s annual crude steel output surpasses 125 million tonnes, with expectations to exceed 300 million tonnes by 2030 under the National Steel Policy (NSP 2017). The domestic demand for steel is driven by rapid urbanization, infrastructural expansion, housing projects, and automotive manufacturing.
The Indian government’s initiatives such as “Make in India,” “Smart Cities Mission,” “PM Gati Shakti,” and “National Infrastructure Pipeline (NIP)” have significantly boosted the demand for steel across sectors. Additionally, renewable energy projects, railways modernization, and defense production are further increasing steel consumption.
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Key Segments of the Industry
The Indian steel industry is divided into two broad categories — primary steel producers and secondary steel producers.
Primary producers include large integrated steel plants that handle the entire production process, from iron ore processing to finished steel products. Examples include SAIL, Tata Steel, and JSW Steel.
Secondary producers, comprising mini mills and smaller units, primarily use scrap or sponge iron to manufacture steel. These players play a crucial role in meeting local demand, especially in construction and small-scale industries.
In terms of product types, flat steel products (used in automobiles, appliances, and shipbuilding) and long steel products (used in construction and infrastructure) dominate the market. The industry also produces specialized steel variants such as stainless steel, alloy steel, and galvanized steel for high-performance applications.
Technological Advancements and Sustainability Efforts
Technological innovation has been a major catalyst in improving efficiency and reducing environmental impact. The introduction of Electric Arc Furnaces (EAFs), Continuous Casting, and Direct Reduced Iron (DRI) technologies has helped Indian manufacturers optimize resource utilization and energy consumption.
Sustainability has become a priority, as steelmaking is traditionally energy-intensive and carbon-heavy. Indian steel producers are increasingly adopting green technologies such as hydrogen-based ironmaking, carbon capture and utilization (CCU), and waste heat recovery systems to align with global sustainability goals. Furthermore, the National Green Hydrogen Mission aims to promote the use of hydrogen as an alternative reducing agent, marking a significant step toward decarbonizing the steel industry.
Challenges Facing the Industry
Despite its impressive growth, the Indian iron and steel sector faces several challenges:
Raw Material Dependence: Although India has abundant iron ore reserves, fluctuations in quality and availability can impact production. Dependence on imported coking coal also increases costs.
Energy Efficiency: The steelmaking process requires significant energy, and improving efficiency while maintaining output remains a key concern.
Environmental Regulations: Compliance with strict emission norms and waste management policies adds to operational costs.
Global Market Volatility: International trade policies, price fluctuations, and competition from China and other low-cost producers can affect profitability.
Addressing these challenges will be crucial to maintaining India’s competitive edge in the global steel landscape.
The Road Ahead
The future of India’s iron and steel industry looks robust, supported by government policies, private sector investment, and technological innovation. The National Steel Policy 2017 envisions India achieving a 300 million tonnes per annum (MTPA) production capacity by 2030 and enhancing per capita steel consumption from the current level of around 80 kg to 160 kg.
With growing emphasis on infrastructure modernization, renewable energy projects, and affordable housing schemes, the domestic demand for steel is expected to remain strong. Moreover, India’s strategic push toward becoming a global manufacturing hub positions its steel sector as a key enabler of economic transformation.
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The iron and steel industry is not just the foundation of India’s industrial economy but also a reflection of its ambition and resilience. From ancient Wootz steel to advanced green steel technologies, India has come a long way in shaping its metallurgical legacy. As the nation strides toward a sustainable and self-reliant future, the iron and steel industry will continue to forge the path for growth, innovation, and global leadership.
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