The India Steel Market is expected to experience strong growth, with a projected Compound Annual Growth Rate (CAGR) of 7% by 2028. This growth is primarily driven by the increasing urbanization and higher investments in construction and infrastructure projects. India's infrastructure segment, in particular, is expected to play a significant role, with the consumption of steel projected to increase to 11% by FY26. The Value of the Steel industry in India, attained a value of USD 75,850.17 Millions in 2021. The rising urbanization in India leads to a significant surge in the demand for steel products in various sectors, thereby fueling the expansion of the steel market. The steady growth of the India Steel Market is expected to create favorable opportunities for industry players and stakeholders. With the anticipated growth in the steel market, it becomes crucial for businesses to stay updated on market trends and dynamics. The growth of various industries and manufacturing sectors supports the demand for steel. The 'Make in India' initiative aims to increase the share of manufacturing in GDP to 25% by 2025 By monitoring the steel market growth in India, companies can make informed decisions and strategize effectively to capitalize on the emerging opportunities in this thriving sector.The recent government initiatives reflect a strong focus on promoting the India Steel Market sector's growth, innovation, and sustainability. These include incentives for specialty steel market production, collaborations for research and development, regional development initiatives, support for hydrogen adoption, and measures to protect domestic steel manufacturers. Collectively, these initiatives aim to strengthen the steel industry's competitiveness, attract investment, and contribute to India's overall economic development. Few of the recent initiative are given below:
- Approved Specialty Steel PLI Scheme: In October 2021, the government introduced guidelines for the approved specialty steel production-linked incentive (PLI) scheme. This scheme aims to attract investment and expand specialty steel capacity, fostering growth and innovation in the sector.
- India-Russia MoU for R&D and Coking Coal: An MoU was signed between India and Russia in October 2021 to collaborate on research and development in the steel sector and promote the production of coking coal, a crucial raw material for steelmaking.
- Specialty Steel PLI Scheme: The Union Cabinet approved a production-linked incentive (PLI) scheme for specialty steel in July 2021. This scheme is expected to attract significant investment and expand specialty steel capacity, contributing to the growth of the industry.
- National Steel Policy (NSP) 2017: The Union Cabinet approved the NSP 2017, envisioning a globally competitive steel industry in India with a target of 300 million tonnes of steel-making capacity and 160 kgs per capita steel consumption by 2030-31.