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Last Updated: Apr 25, 2025 | Study Period: 2024-2030
The Indian steel industry is considered one of the few bright spots in the global steel industry. The steel industry in the country revived from demonetization and the goods and services tax reform and is growing at a rapid pace. India was the worldâs second largest steel producer with production standing at 111.2 million tonnes in 2019.
The growth in the Indian steel sector has been driven by the domestic availability of raw materials. Subsequently, the steel sector has been major contributor to Indiaâs manufacturing growth.
India steel market is expected to have high growth rate over next ten years on the version of government's focus on accelerating infrastructural projects coupled with easy availability of raw materials. With the development new strategies and new production values, upgradation and modernization of older plants is also positively influencing the growth of the market.
The India steel market is expected to witness significant growth during the forecast period, owing to factors, such as the increasing demand from manufacturing sector, the rising preference toward pre-engineered buildings and components, and government initiatives for infrastructure development activities.
India Steel market can be segmented based on the type, production method and region. Based on production method, the market can be segmented into electric arc furnace, blast furnace-basic oxygen furnaces, among others.
Electric arc is the preferred method for the production of steel as it uses an electric arc to melt scrap and convert it into liquid steel. Also, use of electric arc helps to bring down the use of cooking coal in blast furnaces, thereby driving the growth of this segment.
Construction is a sector that observes huge adoption of steel as structures are made with the use of steel due to its high durability and strength. Also, structures made with steel can withstand natural calamities and can be designed to meet the requirements of unique projects.
Additionally, social sector schemes by the government such as Pradhan Mantri Awas Yojana which is about housing for all, Sardar Patel Urban Housing Mission, 100 smart cities mission and infrastructural development of medium and small towns are further driving growth in India steel market.
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During the pandemic, Indiaâs demand for steel contracted in April 2020 with end-user industries like automotive, real estate, and infrastructure that constitute 80% of demand, coming to a virtual standstill.
According to a world steel report, India estimates 8.7 million tonnes of crude steel production in March 2020, down 13.9% compared to March 2019, primarily due to the ongoing difficulties presented by the pandemic globally. Domestic steel production fell by a record 69.5% year-on-year in April 2020.
JSW steel has planned a USD 4.14 billion capital expenditure programme to increase its overall steel output capacity from 18 million tonnes to 23 million tonnes by 2020, Tata Steel has decided to increase the capacity of its Kalinga nagar integrated steel plant from 3 million tonnes to 8 million tonnes at an investment of USD 3.64 billion.The investments and acquisitions are made to meet the growing demand for infrastructural projects in the coming days.
Essar Steel India Limited (ESIL) has been fully acquired by ArcelorMittal, which also announces the formation of a joint venture with Nippon Steel Corporation ('Nippon Steel') called ArcelorMittal Nippon Steel India Limited ('AM/NS India'), which will own and run ESIL.
ArcelorMittal has made a significant strategic move by purchasing Essar Steel. The corporation has long considered India to be a desirable market, and for more than ten years, it has been hunting for ideal prospects to establish a significant production presence there.
Essar and India have enduring attraction. Essar has sizable, lucrative, strategically positioned enterprises, and it is well known that the Indian steel market has room for long-term expansion.
The transaction also shows how the Insolvency and Bankruptcy Code helps India, a genuinely progressive reform whose beneficial effects would be felt throughout the Indian economy.
AM/NS In India, one of the world's most promising steel markets, flat steel, steel plates, and steel pipes are primarily produced at an integrated steel plant with a nominal crude steel production capacity of 9.6 million tonnes annually.
The business also operates manufacturing facilities in east India that create pellets, a steelmaking raw material, and a vast domestic distribution network.
A study conducted by World steel in collaboration with the Indian Steel Association notes that the construction sector is going to be a pan-India driver of steel demand in the country. This would be driven by strong government thrust for infrastructure development and housing for all.
Government initiatives such as âSmart Citiesâ and âAffordable Housingâ as well as building of industrial corridors will boost Indiaâs steel demand definitively. For the country, it means enhanced connectivity, reduced logistical costs and well-distributed development spanning all Indian states.
Other than construction sector, to develop the steel industry is expected to come through the âMake in Indiaâ initiative, which aims to transform India into a global design and manufacturing hub, with sectors along the industrial and freight corridors.
To that end, a number of Indian states are expected to set up automotive and ancillary industries to become global hubs for manufacturing export-oriented small cars.
Structural steel is one of the major raw materials used in construction of pre-engineered buildings. The government is pushing through extensive reforms to strengthen infrastructure and enhance productivity.
It will be interesting to see how effectively India implements its reforms agenda and infrastructure plans to pave the way for optimal growth and expansion of the steel industry.
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Tata Steel and Thiess have agreed to work together to provide mining technical services such as exploration, resource evaluation, and mine planning.
Thiess will also work with Tata Steel to provide global mining companies with cost-effective integrated business solutions. Thiess is established in Australia and is one of the leading mining service suppliers in the country.
Tata Steel will collaborate closely with Thiess India Engineering Hub, which delivers geotechnical and mine engineering, technology service delivery, business process automation, and learning and development services to Thiess' global operations.
This partnership would supplement Tata Steel's strengths and capacity in raising the standards of such services in India, as well as globally, for more scientific and sustainable mining development.
The Adani Group has entered into an agreement with POSCO of South Korea to explore business potential in sectors such as steel and renewable energy, among others.
Both parties have agreed to this in a memorandum of understanding (MoU). The Adani Group has agreed to investigate commercial opportunities with other companies, including the creation of a green, environmentally friendly integrated steel factory in Mundra, Gujarat.
India is a significant player in the global steel market, and a number of its businesses have recently produced noteworthy technical breakthroughs. Here are a few illustrations:
Tata Steel has been a leader in creating high-strength steel varieties with enhanced mechanical qualities. These modern steel grades meet the changing requirements of the automotive, building, and infrastructure industries by providing greater tensile strength, better formability, and improved weldability.
Sustainable Steel Production: Tata Steel has made tremendous strides in this area. In order to cut carbon emissions, improve energy efficiency, and lessen their negative effects on the environment, they have incorporated technology including waste heat recovery systems, coke dry quenching, and energy-efficient operations.
Advanced Steel Coatings: JSW Steel has created and applied advanced steel coatings that provide greater weatherability, durability, and corrosion resistance. These coatings shield steel goods from hostile environments, increase their longevity, and enable them to be used in a variety of industries, such as infrastructure, construction, and the automotive industry.
Continuous Annealing and Processing Line: To produce cutting-edge high-strength steel, JSW Steel has installed a cutting-edge continuous annealing and processing line (CAPL). With the use of the CAPL, steel qualities like strength, formability, and surface quality can be precisely controlled, enhancing product performance and raising consumer satisfaction.
Advanced Steel Grades: SAIL has created and marketed advanced steel grades that are appropriate for demanding applications in industries including nuclear power, aerospace, and defense. These steel grades exceed strict norms and specifications and demonstrate excellent strength, toughness, and resilience to harsh circumstances.
SAIL has made substantial improvements in the production of rails for railways. They create head-hardened, longer, welded rails with better metallurgical characteristics, including greater strength, wear resistance, and less maintenance. These rails make railroad operations safer and more effective.
The manufacture of high-quality iron utilizing natural gas or non-coking coal as a reducing agent is known as direct reduced iron (DRI), and JSPL has invested in this technology. DRI has a number of benefits, including better steel quality, lower emissions, and less energy use.
Advanced Rolling Mills: To produce high-quality steel products, JSPL has implemented advanced rolling mill technologies. Their rolling mills are outfitted with cutting-edge automation and control systems that enable perfect control over the rolling process parameters, producing consistently high-quality products with accurate dimensions.
The rising demand in India, combined with the fact that global manufacturing companies focus to diversify their production by setting-up low-cost plants in countries other than China, is expected to drive Indiaâs manufacturing sector to grow more than six times by 2025, to USD 1 trillion.
This increase in the Indian manufacturing sector has increased the number of manufacturing. Thus, this is driving the demand in the structural steel fabrication market in the country.
For instance, the number of mobile manufacturing plants that were setup in India had increased more than 60 times since 2014. This shows the increasing demand for structural steel fabrication, which is due to the increasing number of manufacturing units in the country.
Government initiatives, such as the construction of metro stations, new no frill airports, international terminals, industry corridors, power plants, and ports, require heavy steel structures. Thus, these factors are expected to drive the growth of the structural steel fabrication market in India.
The top steel companies in India constitute one of the largest industrial revenue earnings in the country, as the steel industry in India is undergoing new stages of development, aided by economic resurgence and growing demand in the downstream sector in India.
| Sl no | Topic |
| 1 | Market Segmentation |
| 2 | Scope of the report |
| 3 | Abbreviations |
| 4 | Research Methodology |
| 5 | Executive Summary |
| 6 | Introduction |
| 7 | Insights from Industry stakeholders |
| 8 | Cost breakdown of Product by sub-components and average profit margin |
| 9 | Disruptive innovation in the Industry |
| 10 | Technology trends in the Industry |
| 11 | Consumer trends in the industry |
| 12 | Recent Production Milestones |
| 13 | Component Manufacturing in US, EU and China |
| 14 | COVID-19 impact on overall market |
| 15 | COVID-19 impact on Production of components |
| 16 | COVID-19 impact on Point of sale |
| 17 | Market Segmentation, Dynamics and Forecast by Geography, 2024-2030 |
| 18 | Market Segmentation, Dynamics and Forecast by Product Type, 2024-2030 |
| 19 | Market Segmentation, Dynamics and Forecast by Application, 2024-2030 |
| 20 | Market Segmentation, Dynamics and Forecast by End use, 2024-2030 |
| 21 | Product installation rate by OEM, 2023 |
| 22 | Incline/Decline in Average B-2-B selling price in past 5 years |
| 23 | Competition from substitute products |
| 24 | Gross margin and average profitability of suppliers |
| 25 | New product development in past 12 months |
| 26 | M&A in past 12 months |
| 27 | Growth strategy of leading players |
| 28 | Market share of vendors, 2023 |
| 29 | Company Profiles |
| 30 | Unmet needs and opportunity for new suppliers |
| 31 | Conclusion |
| 32 | Appendix |
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