Govt to sharpen focus on steel output, raw material security as 2030 target nears
New Delhi: The government will continue to prioritise higher steel production and raw material security in the coming year, as India enters the final five years of its journey towards achieving an installed steelmaking capacity of 300 million tonne (MT) by 2030.
Alongside capacity expansion, the emphasis will remain on the adoption of low-carbon technologies, the development of green steel capacity and the production of special and high-end steel grades to meet the evolving needs of domestic industries and export markets, a steel ministry official said.
The push comes at a time when India is the world’s second-largest crude steel producer, and steel demand continues to be supported by strong infrastructure spending, housing, railways, automobiles, defence manufacturing and capital goods under government initiatives such as PM Gati Shakti, National Infrastructure Pipeline, and Make in India.
However, the industry is also bracing for continued challenges in 2025, including rising imports, volatile raw material prices and global trade uncertainties. Imports, particularly from Asian markets, remain a concern for domestic producers despite safeguard and anti-dumping measures already in place.
In May 2017, the government unveiled the ambitious National Steel Policy (NSP), targeting the addition of over 200 MT of steelmaking capacity with investments estimated at around Rs 10 lakh crore.
The policy also envisages actual steel production of 250 MT and per capita steel consumption of 160 kg by 2030-31.
According to steel ministry data, India’s steel production capacity rose from 97 MT in 2012-13 to 138 MT in 2017-18, and has since expanded steadily with significant brownfield and greenfield investments by both public and private sector players.
As per data research firm BigMint, India’s installed steelmaking capacity was 235 MT as of November 2025, and it is estimated to remain at around the same levels by FY26. The production is projected at 167 MT against current levels of 110 MT. By March 2026, the per capita steel consumption is estimated at 107 kg, compared with 105 kg currently.
Based on these estimates, the country needs to add another 65 MT of capacity over the next five years to stay on track for the NSP targets.
A steel ministry official said the government has taken several steps to protect the domestic industry, including the imposition of safeguard duties and anti-dumping duties on imports of flat steel products from countries such as China and Vietnam.
To promote value-added steel, the ministry has rolled out the Production Linked Incentive (PLI) scheme, offering fiscal incentives for the manufacturing of high-end and speciality steel used in sectors such as defence, power transmission, renewable energy, automobiles and aviation.
The government is focusing on boosting raw material availability by exploring new coking coal reserves and diversifying sourcing through ties with resource-rich countries. Iron ore auctions are underway, with steelmakers encouraged to participate, while beneficiation and pelletisation of low-grade ore are being promoted to enhance efficiency.
