Trade Analytics
India is expected to become the second-largest steel producer in the world by 2016.

Indian Steel Industry Analysis

Latest update: February, 2018

  • In FY17 (1), crude steel production in India was 72.35 MT, with the total crude steel production growing at a CAGR of 4.90 per cent over the last 5 years & reached 89.79 MT in FY16.
  • During April-January 2017, crude steel production in India grew by 7 per cent YoY & stood at 39.98 MT.
  • As of March 2017, the capacity utilisation of steel producers is set to increase with strong export demand and signs of revival in domestic sales. Companies like JSW & Essar Steel have experienced a sharp increase in steel manufacturing in the last 2 months
  • Steel manufacturing output of India is expected to increase from 88.4 million tonnes (MT) in 2017 to 128.6 MT by 2021, accelerating the country’s share of global steel production from 5.4% in 2017 to 7.7% by 2021.

Notes: FY - Indian Financial Year (April – March), MT - Million Tonnes, CAGR - Compound Annual Growth Rate; FY17(1) - April to January 2017
Source: Ministry of Steel Annual Report

  • Total real consumption of steel is estimated at 81.52 MT in FY16.
  • Driven by rising infrastructure development & growing demand for automotives, steel consumption is expected to reach 104 MT by 2017.
  • It is expected that consumption per capita would increase supported by rapid growth in the industrial sector & rising infra expenditure projects in railways, roads & highways, etc.
  • Real consumption of steel during FY17(1) was estimated at 61.54 MT. The consumption of real steel has grew at a CAGR of 1.87 per cent during FY08-FY17(1)


Note: FY17(1) – April -December 2016
Source: JPC India Steel, Ministry of Steel



Last Updated: February, 2018

India is the second-largest crude steel producer in the world. In FY17, India produced 111.254 million tonnes (MT) of finished steel. Total finished steel production in the country increased at a CAGR of 8.39 per cent over FY12-17. Crude Steel and Finished Steel production during April-December 2017 stood at 84.420 MT and 88.592 MT, respectively.

Driven by rising infrastructure development and growing demand for automotives, steel consumption is expected to reach 104 MT by 2017. India’s steel production is expected to increase from 97.42 MT in FY17 to 128.6 MT by 2021. The Government of India has allowed 100 per cent foreign direct investment (FDI) in the steel sector under the automatic route. Nearly 301 MoUs have been signed with various states for planned capacity of about 486.7 MT.

A new scheme, ‘The scheme for the promotion of R&D in the iron and steel sector’, has been approved with budgetary provision of US$ 24.6 million to initiate and implement the provisions of the scheme as per the 11th Five-Year Plan which has continued in the 12th Five Year Plan. The development of technology for Cold-Rolled Grain Oriented (CRGO) steel sheets and other value-added products is also included under the policy purview and is allocated US$ 6.7 million. 

Sectoral Presentation (February, 2018)

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India is tyhe world's largest producer of crude steel, and is currently doubling its production capacity.

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