Infrastructure, construction sector leads steel demand in India, government projects key contributor: Industry Experts

India’s steel consumption is predominantly driven by the infrastructure and construction sectors, which account for 65% of the total steel produced in the country, according to industry experts. Director, Strategy and External Relations at Jindal Steel & Power, Mr. Sanjay Singh, noted that within this segment, around 25-30% of steel is utilised in government projects. This significant demand reflects the ongoing investments in roads, bridges, and other public infrastructure. Complementing this, Chief Executive Officer and President, Advisory at CARE Analytics and Advisory Pvt Ltd, Ms. Swati Agrawal, emphasised that real estate’s recent boom has been a crucial growth driver for the steel industry. She also pointed to the evolving automobile sector, highlighting the transition to electric vehicles and the associated charging infrastructure as emerging contributors to steel demand.
To support domestic manufacturers and shield them from cheaper imports, the Central Government imposed a 12% safeguard duty on steel imports in April 2025. This measure primarily targets imports from China, India’s second-largest steel supplier after South Korea, by setting minimum import prices for key steel product categories ranging from Rs. 58,398 (US$ 675) to Rs. 83,378 (US$ 964) per tonne. He acknowledged that the safeguard duty has provided a protective cushion, insulating Indian producers from the influx of low-cost foreign steel and positively impacting the sector’s competitiveness. This tariff protection is seen as vital to sustaining India’s steel industry amid growing domestic demand and global market pressures..

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