Mumbai, June 26
India’s steel industry is rapidly advancing toward the government’s target of achieving 300 million tonnes per annum (MTPA) of crude steel capacity by FY2030-31, according to a private sector report released on Thursday.
The report highlights that the growth rate of steel production in India has outpaced both China and the global average. Between 2016 and 2024, India recorded a CAGR of about 5 per cent, compared to 2.76 per cent for China and 1.77 per cent globally.
Notably, while China’s steel production has been declining since 2020, India witnessed an accelerated CAGR of 8 per cent during this period. This divergence underscores India’s rising prominence in the global steel industry, supported by abundant raw materials, cost-effective labour, and enabling government policies, the report states.
As of FY2024-25, India has achieved an installed capacity of 205 MTPA, followed by proposed capacity expansion plans of 167 MTPA till 2031 by major steel players. However, the sector faces several challenges, including the need for iron ore beneficiation, an 85 per cent dependence on imported coking coal, limited availability of steel scrap, and high carbon dioxide emission intensity in the steelmaking process, according to the report by MP Financial Advisory Services LLP (MPFASL).