India Retains Position as World’s Second-Largest Steel Producer

India has retained its position as the world’s second-largest steel producer, highlighting the growing strength of the country’s industrial and infrastructure sectors. According to official data, India’s share in global crude steel production increased from 5.2% in 2014 to 7.9% in 2024, reflecting steady expansion in domestic manufacturing capacity.

Key Statistics:

India became the world’s second-largest steel producer in 2018 and has maintained the position since then.

India is also the second-largest consumer of finished steel globally.

Finished steel consumption increased from 77 million tonnes (MT) in 2014–15 to 163.7 MT in 2025–26.

The government aims to achieve 500 MT steel production capacity by 2047.

Importance of Steel Sector in India:

The steel industry plays a crucial role in:

Infrastructure development

Construction and housing

Railways and transport

Automobile manufacturing

Defence production

Renewable energy infrastructure

Focus on Self-Reliance and Domestic Manufacturing:

India’s expanding steel capacity supports the objective of reducing import dependence and strengthening domestic industrial capability.

Government Initiatives:

Promotion of domestic steel manufacturing

Infrastructure-led demand creation

Production-linked industrial expansion

Encouragement of private and public sector investment

The government has also taken measures to protect domestic producers from low-cost imports affecting the steel industry.

Decarbonisation of the Steel Sector:

Green Transition in Steel Manufacturing:

India is pursuing decarbonisation measures in the steel sector to align with its net-zero emission target by 2070.

Key Measures:

Increased use of steel scrap

Promotion of gas-based steelmaking

Adoption of energy-efficient technologies

Reduction in carbon intensity of steel production

India aims to reduce carbon emissions from steel manufacturing while simultaneously expanding production capacity.

Challenges Facing the Steel Sector:

Key Concerns:

Dependence on imported coking coal

Cheap steel imports from foreign countries

High carbon emissions in steel production

Need for advanced green technologies

Global trade barriers such as carbon border taxes

Important Organisations Related to Steel Sector

Ministry of Steel

Responsible for policy formulation and development of the iron and steel industry in India.

Minister: H. D. Kumaraswamy

Minister of State: BhupathirajSrinivasa Varma

World Steel Association (worldsteel)

An international industry body that publishes global steel production and consumption statistics.

Formation: 1967

Headquarters: Brussels, Belgium

Chairman: Mr Uğur Dalbeler

Steel Authority of India Limited (SAIL)

Steel Authority of India Limited is a Maharatna Public Sector Undertaking under the Ministry of Steel and one of India’s leading steel producers.

Founded: 1954

Headquarters: New Delhi

Chairman and Managing Director: KK Singhv