India is on track to become a global leader in steel production, with targets set to reach 300 million tons of crude steel capacity by 2030 and 500 million tons by 2047.
Currently, the world's second-largest steel producer, India's steel sector is vital for the country's economic development. In FY2024, the country's domestic finished steel consumption rose to 136 million tons, an increase of more than 14% over the previous year. This increase was largely driven by the construction and infrastructure sectors, which consumed close to 94 million tons of steel.
Government initiatives and increasing urbanization were the key drivers of the expansion of the steel sector. In 2022-23, India's per capita steel consumption will reach 93.44 kg, highlighting its potential for further growth compared to the global average. Estimates suggest that by 2034, finished steel consumption in India could range between 221 million tons and 275 million tons, depending on various economic and industrial scenarios.
The Indian steel industry's growth is also supported by policy initiatives such as the National Steel Policy, Production-Linked Incentive (PLI) schemes, and flagship programs like the Pradhan Mantri Awas Yojana (PMAY). These measures have significantly increased steel demand, positioning India to enhance its presence on the global industrial stage.
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