Indian Government Focuses on Steel Production and Raw Material Security

India’s Steel Production Goals Drive Industry Growth

The Indian government is intensifying its focus on steel production and raw material security to achieve its 2030 targets. Officials aim for a steel production capacity of 300 million tons by 2030, emphasizing green steel and high-quality grades for domestic and export markets. Demand for steel remains strong, driven by infrastructure projects, housing, defense, and manufacturing initiatives.

Government measures aim to protect local producers from rising imports and market instability. Safeguard and anti-dumping duties target flat steel imports from China and Vietnam, while the production-linked incentive (PLI) scheme provides fiscal support for high-quality and specialized steel. These initiatives target sectors like defense, renewable energy, automotive, and aviation.

Meanwhile, the government is actively improving raw material availability. Efforts include exploring new coking coal reserves, diversifying import sources, and promoting the enrichment of low-grade iron ore. Auctions for domestic iron ore encourage local producers to secure raw materials efficiently, even as imports rise to multi-year highs in 2025 due to limited domestic supply.

Challenges for India’s Steel Industry Despite Government Support

Despite these policies, Indian steelmakers face significant challenges. Rising coking coal costs, high logistics expenses, and infrastructure bottlenecks continue to pressure profit margins. The industry also contends with global trade uncertainties, although potential free trade agreements with the EU and the US may offer some relief.

Industry experts, including Assocham, stress that while government incentives support the sector, companies must navigate fluctuating raw material prices and evolving trade barriers. Domestic production efficiency and strategic raw material management will remain critical for meeting the 2030 steel production goals.

SuperMetalPrice Commentary:

India’s commitment to steel production and raw material security signals long-term growth for the sector. Strategic investment in green and specialized steel can position Indian producers as global competitors. However, rising input costs and infrastructure constraints require careful planning and international cooperation to sustain momentum.