India’s steel industry to grow at 8%; capacity to rise by 20 million tons by FY27: report

India's steel industry is poised for significant growth, with an annual capacity increase of 20 million tons projected between FY25-27, according to Acuite Ratings & Research. Driven by robust demand from the automotive, real estate, and infrastructure sectors, steel consumption is expected to grow by 8% in the medium term despite challenges like margin pressures and rising imports from countries such as China and Vietnam. Imports have surged due to China's excess capacity and sluggish domestic demand, but India has implemented higher tariffs on specific grades of steel imports to protect local manufacturers and mitigate risks. Environmental regulations, raw material price volatility, and rising costs will remain challenges for the sector in maintaining cost efficiency.

India's crude steel production has grown from 109.1 million tonnes in 2019-20 to 144.3 million tonnes in 2023-24, at a CAGR of 7.2%, supported by an increase in production capacity from 142.3 MTPA to 179.5 MTPA during the same period. Per capita steel consumption has doubled over the last decade, reaching 119 kg in 2022-23, up from 59 kg in 2013-14.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.