Report Overview

India Steel Market – Industry Trends & Forecast Report, 2030

India Steel Market size by value was estimated at USD 187.2 billion in 2023. During the forecast period between 2024 and 2030, India Steel Market size is projected to grow at a CAGR of 9.3% reaching a value of USD 285.19 billion by 2030. Prominent drivers of the market include rapid post-pandemic recovery, boosting demand in sectors such as automotive, transportation, and construction. Robust domestic demand for finished steel further propels this expansion, with steady increases in consumption year-over-year. Significant investments have also enhanced market growth. Under the Production-Linked Incentive (PLI) scheme, an estimated USD 1.2 billion has been directed toward specialty steel manufacturing for 2024, with an additional USD 1.9 billion expected by the end of FY24. These funds are fueling capacity expansion and product innovation. Government support plays a crucial role, including the allocation of INR 70.15 crore (approximately USD 8.6 million) under the Union Budget 2023-24, along with policies that promote self-reliance and industry growth. India’s competitive advantages, such as abundant cost-effective labor and extensive iron ore reserves, position the country as a global steel market contender. With a production increase projected at 4% to 7% in FY24, India is on track to strengthen its foothold. Additionally, growing urbanization and increased infrastructure spending drive construction activities nationwide, particularly through government-backed projects valued at INR 75,000 crore (approximately USD 9.15 billion), further bolstering steel demand. India's steel industry is crucial to manufacturing output and industrialization, serving as an economic growth indicator. As the country advances its 'Make in India' initiative to become a global manufacturing hub, the production and consumption of steel are anticipated to grow substantially.

By volume, India Steel Market size was estimated at 123 million tons in 2023. During the forecast period between 2024 and 2030, India Steel Market size is projected to grow at a CAGR of 7.2% reaching the volume of 187.3 million tons by 2030. Finished steel consumption in India was 119.17 million tons in FY23, expected to rise to 138.5 million tons in FY24. The Indian Steel Association estimates a steel requirement of 128.9 million tons for 2023-24. The industry is attracting investments, with companies under the Production Linked Incentive scheme set to invest around USD 1.2 billion in specialty steel making. The Government of India announced initiatives to foster self-reliance, allocating INR 70.15 crore to the Ministry of Steel for 2023-24, supporting modernization and sustainable growth in the sector.

Steel – Overview

Steel, an alloy primarily of iron and carbon, offers significantly greater strength and fracture resistance than pure iron, making it one of the most widely used materials globally. Essential in construction, infrastructure, transportation, and appliances, steel’s durability and cost-effectiveness are key to its popularity. While iron serves as its base, elements like chromium (about 11%) are often added to create corrosion-resistant stainless steel. Steel’s properties—such as hardness, tensile strength, and ductility—are controlled by carbon content, which may reach up to 2.14%, and the addition of other elements, enhancing its performance while limiting pure iron’s natural softness.

India Steel Market

Growth Drivers

Large Infrastructure Development Projects

India stands out as a significant player in the global steel industry, emerging as the second-largest steel producer with a growth rate of 4.9%, and is projected to become the second-largest consumer of steel by the end of 2019, driven largely by infrastructure development. Government initiatives such as the ‘Smart Cities’ program, ‘Affordable Housing’ scheme, and the establishment of industrial corridors are expected to propel steel demand by enhancing connectivity and reducing logistical costs. The ‘Make in India’ initiative further supports this growth, aiming to position the country as a global design and manufacturing hub, particularly in automotive and ancillary industries along key corridors. Favorable demographic trends indicate significant growth potential, with steel demand projected to rise by 7.3%. Overall, the synergy between infrastructure development and the steel market positions India for substantial growth as the government continues to invest in reform and development.

Challenges

Economic Fluctuations

India is the second-largest steel producer globally, with a production of 118 million tons in 2021. However, per capita consumption remains low at 77 kg compared to the global average of 233 kg. The government’s National Steel Policy aims for production of 255 million tons by 2030. Despite significant resources, the industry faces economic challenges, including high financing costs, inadequate logistics, and reliance on imported coking coal. Additionally, anti-dumping duties on Chinese steel aim to support domestic players. These fluctuations in economic conditions impact growth and competitiveness in India's steel market.

Impact of Escalating Geopolitical Tensions on India Steel Market

Escalating geopolitical tensions among countries and spreading across the major regions could have a significant impact on the growth of India Steel Market. These tensions can lead to trade barriers, affecting steel imports and exports, which may disrupt supply chains and increase production costs. The imposition of tariffs and anti-dumping duties can alter competitive dynamics, potentially benefiting domestic manufacturers while challenging reliance on foreign steel. Furthermore, geopolitical instability may deter foreign investments in infrastructure projects, impacting demand for steel. As the industry navigates these uncertainties, it becomes essential for stakeholders to adapt strategies that mitigate risks associated with fluctuating global markets and enhance resilience in the face of geopolitical challenges.

India Steel Market

Segmental Coverage

India Steel Market – By Product Type

By product type, India Steel Market is divided into Carbon Steel, Alloy Steel, Stainless Steel, Tool Steel, and High-Speed Steel segments.

India Steel Market – By Form

Based on form, India Steel Market is divided into Flat Steel Products, Long Steel Products, and Tubular Steel Products segments. The flat steel segment holds the highest share in India Steel Market is divided by form, primarily due to its extensive applications across key industries like construction, automotive, and consumer goods. Flat steel products, including hot-rolled and cold-rolled coils and coated sheets, are essential for structural and aesthetic applications in construction, body panels in automotive, and durable components in home appliances. Demand for flat steel is driven by economic growth, rapid urbanization, and infrastructure projects like affordable housing and smart cities. Dominated by major players like Tata Steel, JSW Steel, and SAIL, the segment is competitive, with a strong focus on innovation and efficiency to meet diverse market needs.

India Steel Market – By Application

On the basis of application, India Steel Market is divided into Construction, Automotive, Machinery, Energy (Oil & Gas), Appliances, and Aerospace segments. The construction segment holds the highest share of India Steel Market by application. It can be attributed to steel's fundamental properties, as it is a synthetic alloy primarily composed of iron, carbon, and other elements. Renowned for its strength and longevity, steel is widely used in construction, representing nearly 40% of India’s total steel demand, according to the Joint Plant Committee (JPC) for FY2021. Government initiatives, such as the Pradhan Mantri Awas Yojana, the Sardar Patel Urban Housing Project, and the 100 Smart Cities Mission, have further reinforced the demand for steel in this sector, contributing significantly to the growth of the Indian steel industry. Reports from the Ministry of Steel (MOS) and JPC indicate that India’s steel consumption reached approximately 106 million metric tons in 2021, showcasing considerable advancement. Additionally, initiatives like the National Bank for Financing Infrastructure and Development (NaBFID) and a notable influx of foreign direct investment (FDI) in infrastructure and construction underline the sector's vast potential. In FY 2021, infrastructure alone accounted for 13% of total FDI inflows, positioning the construction and building industry for substantial growth and, in turn, increasing the demand for steel in India throughout the forecast period.

India Steel Market – By Region

The in-depth research report on India Steel Market covers the market in the country’s major regions: North India, South India, East India, and West India regions. North India holds the highest share in India Steel Market and is expected to maintain its dominance during the forecast period. The leadership is driven by North India’s significant industrial base, rapid infrastructure development, and strategic location. States like Uttar Pradesh, Haryana, Punjab, Rajasthan, and Delhi anchor the region’s steel demand through industries like automotive, engineering, and construction, particularly in cities such as Delhi-NCR, Gurgaon, and Ludhiana. Infrastructure projects like the Delhi-Mumbai Industrial Corridor and metro expansions further boost steel consumption. Proximity to raw materials and strategic transport networks, along with supportive government policies, attract investments and strengthen North India’s competitive edge in the steel sector.

Competitive Landscape

Major players operating in India Steel Market include Tata Steel, JSW Steel, ArcelorMittal Nippon Steel India, SAIL (Steel Authority of India Limited), Essar Steel India, Vedanta Steel, Bhushan Steel, RINL (Rashtriya Ispat Nigam Limited), and Usha Martin Limited. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

By Product Type

• Carbon Steel

• Alloy Steel

• Stainless Steel

• Tool Steel

• High-Speed Steel

By Form

• Flat Steel Products

• Long Steel Products

• Tubular Steel Products

By Application

• Construction

• Automotive

• Machinery

• Energy (Oil & Gas)

• Appliances

• Aerospace

By Region

• North India

• South India

• East India

• West India

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. India Steel Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Infrastructure Development
         2. Increasing Urbanization and Industrialization
         3. Increasing Automotive Industry
      2. Restraints
         1. Economic Fluctuations
         2. Competition from Other Materials
      3. Opportunities
         1. Economic Growth
         2. Advancements in Technology
      4. Challenges
         1. Environmental Concerns
         2. Trade Restrictions
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. India Steel Market: Marketing Strategies
5. India Steel Market: Pricing Analysis
6. India Steel Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Product Type
         1. Carbon Steel
         2. Alloy Steel
         3. Stainless Steel
         4. Tool Steel
         5. High-Speed Steel
      2. By Form
         1. Flat Steel Products
         2. Long Steel Products
         3. Tubular Steel Products
      3. By Application
         1. Construction
         2. Automotive
         3. Machinery
         4. Energy (Oil & Gas)
         5. Appliances
         6. Aerospace
      4. By Region
         1. North India
         2. South India
         3. East India
         4. West India
7. North India Steel Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Product Type
      2. By Form
      3. By Application
8. South India Steel Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Product Type
      2. By Form
      3. By Application
9. East India Steel Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Product Type
      2. By Form
      3. By Application
10. West India Steel Market
    1. Market Size & Forecast, 2019–2030
       1. By Value (USD Billion)
    2. Market Share & Forecast
       1. By Product Type
       2. By Form
       3. By Application
11. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. India Steel Company Market Share Analysis, 2023
    3. Competitive Benchmarking, By Operating Parameters
    4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
12. Impact of Escalating Geopolitical Tensions on India Steel Market
13. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)
    1. Tata Steel
    2. JSW Steel
    3. ArcelorMittal Nippon Steel India
    4. SAIL (Steel Authority of India Limited)
    5. Essar Steel India
    6. Vedanta Steel
    7. Bhushan Steel
    8. RINL (Rashtriya Ispat Nigam Limited)
    9. Usha Martin Limited
    10. Other Prominent Players
14. Key Strategic Recommendations
15. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3.  Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4.  Breakdown of Primary Research Respondents, By Region
    5.  Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       India Steel  Segmentation        

Figure 2       India Steel Market Value Chain Analysis       

Figure 3       Company Market Share Analysis, 2023

Figure 4       India Steel Market Size, By Value (USD Billion), 2019–2030      

Figure 5       India Steel Market Share, By Product Type , By Value, 2019–2030      

Figure 6       India Steel Market Share, By Form, By Value, 2019–2030

Figure 7       India Steel Market Share, By Application, By Value, 2019–2030 

Figure 8       North India Steel Market Size, By Value (USD Billion), 2019–2030       

Figure 9       North India Steel Market Share, By Product Type , By Value, 2019–2030      

Figure 10     North India Steel Market Share, By Form, By Value, 2019–2030

Figure 11     North India Steel Market Share, By Application, By Value, 2019–2030 

Figure 12     South India Steel Market Size, By Value (USD Billion), 2019–2030      

Figure 13     South India Steel Market Share, By Product Type , By Value, 2019–2030      

Figure 14     South India Steel Market Share, By Form, By Value, 2019–2030

Figure 15     South India Steel Market Share, By Application, By Value, 2019–2030 

Figure 16     East India Steel Market Size, By Value (USD Billion), 2019–2030

Figure 17     East India Steel Market Share, By Product Type , By Value, 2019–2030

Figure 18     East India Steel Market Share, By Form, By Value, 2019–2030  

Figure 19     East India Steel Market Share, By Application, By Value, 2019–2030   

Figure 20     West India Steel Market Size, By Value (USD Billion), 2019–2030       

Figure 21     West India Steel Market Share, By Product Type , By Value, 2019–2030       

Figure 22     West India Steel Market Share, By Form, By Value, 2019–2030 

Figure 23     West India Steel Market Share, By Application, By Value, 2019–2030  

List of Tables

Table 1        India Steel Market Size, By Value (USD Billion), 2019–2030

Table 2        India Steel Market Size, By Product Type , By Value, 2019–2030

Table 3        India Steel Market Size, By Form, By Value, 2019–2030

Table 4        India Steel Market Size, By Application, By Value, 2019–2030

Table 5        North India Steel Market Size, By Value (USD Billion), 2019–2030

Table 6        North India Steel Market Size, By Product Type , By Value, 2019–2030

Table 7        North India Steel Market Size, By Form, By Value, 2019–2030

Table 8        North India Steel Market Size, By Application, By Value, 2019–2030

Table 9        South India Steel Market Size, By Value (USD Billion), 2019–2030

Table 10      South India Steel Market Size, By Product Type , By Value, 2019–2030

Table 11      South India Steel Market Size, By Form, By Value, 2019–2030

Table 12      South India Steel Market Size, By Application, By Value, 2019–2030

Table 13      East India Steel Market Size, By Value (USD Billion), 2019–2030

Table 14      East India Steel Market Size, By Product Type , By Value, 2019–2030

Table 15      East India Steel Market Size, By Form, By Value, 2019–2030

Table 16      East India Steel Market Size, By Application, By Value, 2019–2030

Table 17      West India Steel Market Size, By Value (USD Billion), 2019–2030

Table 18      West India Steel Market Size, By Product Type , By Value, 2019–2030

Table 19      West India Steel Market Size, By Form, By Value, 2019–2030

Table 20      West India Steel Market Size, By Application, By Value, 2019–2030

Table 21      Tata Steel Company Overview

Table 22      Tata Steel Financial Overview

Table 23      JSW Steel Company Overview

Table 24      JSW Steel Financial Overview

Table 25      ArcelorMittal Nippon Steel India Company Overview

Table 26      ArcelorMittal Nippon Steel India Financial Overview

Table 27      SAIL (Steel Authority of India Limited) Company Overview

Table 28      SAIL (Steel Authority of India Limited) Financial Overview

Table 29      Essar Steel India Company Overview

Table 30      Essar Steel India Financial Overview

Table 31      Vedanta Steel Company Overview

Table 32      Vedanta Steel Financial Overview

Table 33      Bhushan Steel Company Overview

Table 34      Bhushan Steel Financial Overview

Table 35      RINL (Rashtriya Ispat Nigam Limited) Company Overview

Table 36      RINL (Rashtriya Ispat Nigam Limited) Financial Overview

Table 37      Usha Martin Limited Company Overview

Table 38      Usha Martin Limited Financial Overview