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Iron & Steel Industry in India

India’s steel production is projected to rise from 168.4 Million tonnes in FY26 to 255 Million tonnes by FY31, creating strong growth opportunities across the steel ecosystem.

Advantage India

Robust
Demand

*In FY26 , finished steel production stood at 160.90 MT.

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

Robust economic growth icon

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.

*According to KPMG India, on May 8, 2026, India’s steel sector crossed 200 MTPA capacity and is progressing towards the 300 MTPA target by 2030, with strong investment momentum driving large-scale expansion.

Attractive investment icon India

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.

India policy support icon

Competitive
Advantage

*In FY26, crude steel production in India stood at 168.4 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.

Competitive advantage icon India
Last updated: Sep, 2026

States with the Highest Steel-Producing Capacity in India

  • Odisha
  • Chhattisgarh
  • Jharkhand
  • Karnataka
FDI Confidence Index 2012

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