India’s Steel Sector and Self-Reliance

 

1. India became the world’s second-largest steel producer in 2018 and has retained this position continuously up to 2026.

2. India’s share in global crude steel production increased from 5.2% in 2014 to 7.9% in 2024.

3. Finished steel consumption in India increased from 77 million tonnes in 2014–15 to 163.7 million tonnes in 2025–26.

4. India aims to achieve 500 million tonnes of steel production capacity by 2047 under its long-term industrial strategy.

5. Crude steel production reached 168.4 million tonnes in FY 2025–26, compared to 152.2 million tonnes in FY 2024–25.

6. Crude steel production recorded a growth of 10.7% in FY 2025–26 over the previous financial year.

7. Finished steel production reached 160.9 million tonnes in FY 2025–26, registering a growth of 9.7%.

8. Finished steel consumption stood at 163.7 million tonnes in FY 2025–26, reflecting a growth of 7.6%.

9. Steel exports increased by 29.1% in March 2026 compared to March 2025, while imports declined by 9.5%.

10. Finished steel exports during FY 2025–26 increased by 35.8%, whereas imports declined by 46.47%.

11. Under the PLI Scheme for Specialty Steel, ₹23,022 crore of investment has been realised, generating 2.4 million tonnes of production.

12. The PLI Scheme has created 13,264 direct jobs and established 24 million tonnes of specialty steel production capacity.

13. India has already achieved approximately 66% of the crude steel production target envisioned under the National Steel Policy 2017.

14. In April 2025, the Government imposed a 12% safeguard duty on select non-alloy and alloy steel flat products to protect domestic manufacturers.

15. India became the first country in the world to introduce an official Green Steel Taxonomy in 2024, defining green steel as steel produced with emission intensity below 2.2 tonnes of CO₂ equivalent per tonne of finished steel.

Must Know Terms  :

 

1.GreenSteelTaxonomy

GreenSteelTaxonomy is India’s official framework introduced in 2024 to classify steel based on carbon emission intensity. India became the first country to adopt such a taxonomy. Under the framework, green steel is defined as steel produced with emission intensity below 2.2 tonnes of CO₂ equivalent per tonne of finished steel. By March 2026, 89 steel units had received green steel certification.

2. PLISpecialtySteel

PLISpecialtySteel refers to the Production Linked Incentive scheme launched in 2021 to boost domestic manufacturing of value-added specialty steel. The scheme has a financial outlay of ₹6,322 crore and provides incentives between FY 2024–25 and FY 2030–31. By 2026, ₹23,022 crore investment had been realised, generating 2.4 million tonnes of production and creating over 13,000 direct jobs.

3. NationalSteelPolicy2017

NationalSteelPolicy2017 is India’s long-term roadmap for expanding steel production and consumption. The policy aims to achieve 300 million tonnes of crude steel capacity and 255 million tonnes of production by 2030–31. It also targets per-capita finished steel consumption of 158 kilograms and seeks to reduce dependence on imported coking coal while promoting high-grade steel manufacturing.

4. MissionCokingCoal

MissionCokingCoal was launched in 2024 to strengthen domestic availability of coking coal, a critical raw material for steel production. The mission aims to increase domestic raw coking coal production to 140 million tonnes by FY 2029–30. It seeks to reduce import dependence, improve raw material security, lower production risks, and support long-term self-reliance in the steel sector.

5. StrategicPetroleumReserveForSteelRawMaterials

StrategicPetroleumReserveForSteelRawMaterials reflects the broader policy approach of securing critical industrial inputs for manufacturing sectors. In the steel industry, similar efforts focus on ensuring uninterrupted availability of essential raw materials through customs duty reforms, domestic mining expansion, logistics improvements, and resource security measures. These initiatives strengthen industrial resilience and support India’s self-reliance objectives across strategic sectors.

6. SteelScrapRecyclingPolicy

SteelScrapRecyclingPolicy was notified in 2019 to increase the availability of high-quality domestic ferrous scrap for steel production. The policy reduces dependence on imported scrap and supports environmentally sustainable steel manufacturing. Greater scrap utilisation lowers energy consumption, reduces water use by around 40 percent, cuts greenhouse gas emissions by nearly 58 percent, and contributes significantly to India’s decarbonisation goals.

 

India’s steel sector is a key “sunrise sector” with strong and steady growth. It became the world’s second-largest steel producer in 2018 and has retained this position. At the same time, steel consumption has more than doubled over the past 12 years. As demand increased, exports rose while imports declined, improving self-reliance. To support this growth, the government ensured raw material availability and reduced production costs. It also improved access to global markets for Indian steel producers. Under the PLI scheme, ₹23,022 crore investment supported specialty steel production and job creation. This resulted in 2.4 million tonnes of output and over 13,000 new jobs. India has achieved about 66% of its National Steel Policy production target. Going forward, green steel aims to reduce emissions by avoiding use of fossil fuels to reduce the carbon footprints. India is also committed to decarbonising the sector and achieving net zero emission by 2070.

 

MCQ :

1. India became the world’s second-largest steel producer in:

A. 2016
B. 2017
C. 2018
D. 2019

2. India’s share in global crude steel production increased to what level in 2024?

A. 6.5%
B. 7.9%
C. 8.9%
D. 9.5%

3. Finished steel consumption in India reached how much in FY 2025–26?

A. 152.1 MT
B. 160.9 MT
C. 163.7 MT
D. 168.4 MT

4. India aims to achieve what steel production capacity by 2047?

A. 300 MT
B. 400 MT
C. 450 MT
D. 500 MT

5. Crude steel production in FY 2025–26 stood at:

A. 144.3 MT
B. 152.2 MT
C. 160.9 MT
D. 168.4 MT

6. Crude steel production growth in FY 2025–26 was:

A. 7.6%
B. 9.1%
C. 10.7%
D. 12.4%

7. Finished steel production in FY 2025–26 was:

A. 146.7 MT
B. 152.1 MT
C. 160.9 MT
D. 163.7 MT

8. Steel exports in March 2026 increased by:

A. 19.1%
B. 24.1%
C. 29.1%
D. 35.8%

9. Finished steel exports during FY 2025–26 increased by:

A. 29.1%
B. 35.8%
C. 46.47%
D. 58.0%

10. Under the PLI Scheme for Specialty Steel, realised investment reached:

A. ₹6,322 crore
B. ₹11,887 crore
C. ₹23,022 crore
D. ₹44,106 crore

11. The PLI Scheme created how many direct jobs?

A. 8,264
B. 10,264
C. 13,264
D. 33,460

12. India has achieved approximately what percentage of the crude steel production target under the National Steel Policy 2017?

A. 50%
B. 66%
C. 75%
D. 85%

13. The safeguard duty imposed on select steel flat products in April 2025 was:

A. 8%
B. 10%
C. 12%
D. 15%

14. Green Steel Taxonomy was introduced by India in:

A. 2022
B. 2023
C. 2024
D. 2025

15. Under India’s Green Steel Taxonomy, green steel must have emission intensity below:

A. 1.5 tonnes CO₂e per tonne
B. 2.0 tonnes CO₂e per tonne
C. 2.2 tonnes CO₂e per tonne
D. 2.5 tonnes CO₂e per tonne