Growth of Steel Industry - Infographic

Expansion of steel production capacity to 300 MT will translate into additional investment of Rs. 10 lakh crore (US$ 156.08 billion) by 2030-31.

Advantage India

Robust
Demand

*In FY26 (April-February 2026), finished steel production stood at 146.8 MT.

*India’s domestic steel demand is estimated to grow by 9-10% in 2025 as per ICRA.

Increasing
investments

*To achieve steel capacity build-up of 300 MT per annum by 2030, India would need to invest US$ 156.08 billion by 2030-31.

*On December 10, 2025, the Board of Tata Steel approved an in-principle 4.80 MTPA capacity expansion at Neelachal Ispat Nigam Limited (NINL) as part of Phase I, alongside plans to enhance flat steel capacity through a 2.50 MTPA thin slab caster and rolling facility at Meramandali, and set up a 0.70 MTPA downstream galvanising line in Maharashtra.

Policy
Support

*Under the Union Budget 2026-27, the government allocated Rs. 443.18 crore (US$ 50.1 million) to the Ministry of Steel.

*Recent policy support includes expansion of the PLI scheme (PLI 1.1 and 1.2), simplification of import procedures by removing NOC for non-QCO grades, calibrated suspension of select QCO standards, and logistics integration under PM GatiShakti to boost efficiency and investment.

Competitive
Advantage

*In FY26 (April- February 2026), crude steel production in India stood at 153.6 MT.

*India’s steel industry benefits from rich iron ore reserves in Odisha, Jharkhand, and Chhattisgarh, supported by integrated facilities, PLI incentives, and cost advantages.

*Easy availability of low-cost manpower and presence of abundant iron ore reserves make India competitive in the global set up.

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Last updated: Feb, 2026

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