As per MRFR analysis, the India Steel Market Size was estimated at 185.89 (USD Billion) in 2023. The India Steel Market Industry is expected to grow from 200.0(USD Billion) in 2024 to 230.0 (USD Billion) by 2035. The India Steel Market CAGR (growth rate) is expected to be around 1.279% during the forecast period (2025 - 2035).
Key India Steel Market Trends Highlighted
The growth of infrastructure and domestic demand are driving major trends in the India steel market at the moment. With programs like "Make in India" and "Atmanirbhar Bharat," the government is concentrating on large-scale infrastructure projects, which is one of the main factors driving the market. In order to increase the demand for steel in the manufacturing, transportation, and construction sectors, these initiatives seek to strengthen local manufacturing and self-reliance. The need for steel goods is further enhanced by the fast urbanization of cities and the resulting rise in construction activities. Recycling programs and the rising demand for green steel are two opportunities in the Indian steel market. Eco-friendly methods are being incorporated into steel production by Indian firms as sustainability becomes more important. Investments in technologies that support lower carbon emissions and resource efficiency, in line with international norms, are booming. Quality and sophisticated steel grades are becoming more and more important, which opens up opportunities for businesses who focus on these areas to gain market share. The trend in steel manufacturing toward digitization has been accelerating recently. To increase efficiency, optimize supply chain management, and streamline operations, businesses are embracing Industry 4.0 principles more and more. Automation and digital tools assist cut expenses and improve efficiency. Additionally, when stakeholders collaborate to address issues with raw material supply and market instability, private-public sector collaboration is also apparent. Overall, the Indian steel market is undergoing a metamorphosis as a result of several forces coming together to influence its direction.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
India Steel Market Drivers
Growing Infrastructure Development
The rapid expansion and development of infrastructure in India significantly drive the India Steel Market Industry. The Government of India aims to increase public infrastructure spending, with the Ministry of Finance revealing plans to allocate over 20% of its budget to infrastructure over the next few years. This includes investments in highways, railways, and urban development projects. In 2021, it was reported that around 7,400 kilometers of highway projects had been awarded, with a total investment exceeding INR 1.5 lakh crore.Such substantial investments in infrastructure not only increase the demand for steel but also position major public sector enterprises like Steel Authority of India Limited (SAIL) and Tata Steel in a favorable position, as they play critical roles in supplying the steel required for these projects. Therefore, the target of enhancing national connectivity through infrastructure contributes to the projected increase in steel consumption, establishing a healthier growth forecast for the India Steel Market Industry.
Increase in Automotive Production
The automobile sector is crucial for the growth of the India Steel Market Industry, with a significant percentage of steel consumption attributed to vehicle manufacturing. The Automotive Mission Plan 2026 set by the Indian government targets to increase the automotive industry’s contribution to the GDP from 7.1% to approximately 12%. Notably, in the fiscal year of 2022, India's automobile production reached about 24 million units, showcasing a steady rise in production levels.As automotive manufacturers seek to innovate and meet increasingly stringent safety and emission norms, the demand for high-strength steel will likely surge. Major automakers like Tata Motors and Mahindra Mahindra are actively using more steel in vehicle structures, which further indicates growing consumption trends. This focus on automotive production supports the growth trajectory of the India Steel Market Industry.
Government Initiatives for 'Make in India'
The 'Make in India' initiative significantly enhances domestic manufacturing, thus positively impacting the India Steel Market Industry. The initiative aims to have a robust manufacturing sector, contributing to 25% of India's GDP by 2025. With more than 1,200 companies announcing investments, the scheme has encouraged local manufacturers to increase production capabilities. Reports show that the initiatives have attracted foreign investments amounting to USD 40 billion in the last couple of years, fostering a conducive environment for steel demand.The steel production has been targeted to exceed 300 million tons by 2030, as per the Indian Steel Association. This drive for increased domestic manufacturing not only boosts the production of value-added steel products but also ensures a sustainable ecosystem for the India Steel Market Industry's growth.
India Steel Market Segment Insights:
Steel Market Steel Type Outlook Insights
The India Steel Market, focusing on the Steel Type Outlook, showcases an essential dynamic that is integral to the nation's economic infrastructure. The market exhibits strong performance across various classifications of steel products, particularly in the categories of Flat and Long steel. Flat steel products, which are crucial for construction, automotive, and manufacturing sectors, hold a significant portion of the market due to their extensive applications. These products, ranging from sheets and plates to coils, are widely utilized in the appliance and automotive industries, contributing meaningfully to the growth of the India Steel Market revenue. On the other hand, Long steel products, including bars, rods, and sections, are predominantly used in the construction industry, particularly in infrastructure projects like roads and bridges. This category witnesses substantial demand owing to the acceleration of industrialization and urbanization in India. Given the government's strong focus on projects aligned with the “Make in India” initiative and urban development missions, there is an anticipated steady growth trajectory for Long steel products. An analysis of the India Steel Market segmentation reveals that while Flat steel has carved a noteworthy niche in various manufacturing sectors, Long steel's dominion in construction and structural applications establishes it as equally critical to the development landscape of the country. Market trends indicate that the oscillating raw material prices and a push towards sustainable practices are challenges that stakeholders in the industry are strategizing to mitigate. However, the continuous investment in infrastructure and real estate, bolstered by government policies, presents significant opportunities for expansion in both Flat and Long steel segments. As the market evolves, these segments are expected to be at the forefront of technological advancements, enhancing production efficiency and quality to meet growing domestic and export demands, underlining their importance within the India Steel Market industry. Overall, with a diverse array of applications and an evolving production landscape, the Steel Type Outlook segment exemplifies the robust potential and ongoing significance of steel in India’s growth narrative amidst global market dynamics and local demands.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Steel Market Steel Product Outlook Insights
The Steel Product Outlook segment within the India Steel Market illustrates a pivotal role in supporting infrastructure development and construction activities across the nation. Structural steel has become indispensable in modern construction, providing robust frameworks for buildings, bridges, and industrial facilities. Its high strength-to-weight ratio contributes to efficient designs, thus driving demand in urban development projects and large-scale industrial implementations. On the other hand, Prestressing steel serves as a crucial function in enhancing the performance of concrete structures by enabling them to withstand higher loads and minimizing deflections.This steel variant is increasingly adopted in highway bridges and high-rise buildings, reflecting its significance in achieving engineering excellence. Moreover, the growing trends in smart cities and green building initiatives in India present considerable opportunities for both structural and prestressing steel, reinforcing their pivotal positions in the India Steel Market landscape. These trends drive the need for sustainable and resilient construction materials, ultimately fueling market growth in this segment.
Steel Market Steel Application Outlook Insights
The Steel Application Outlook in the India Steel Market highlights the critical role steel plays across various industries, significantly influenced by the country’s rapid urbanization and infrastructure development initiatives. In the Building Construction sector, steel is essential due to its strength and versatility, supporting the growing demand for residential and commercial projects. The Automotive industry relies heavily on steel to enhance vehicle performance and safety while maintaining cost-effectiveness, driving innovation in manufacturing techniques.Similarly, the Electrical Appliance sector benefits from steel's conductive properties and durability, enabling the production of reliable appliances essential for everyday use. As India continues to invest in infrastructure and technology, the demand for steel in these applications is expected to maintain a robust growth trajectory, reinforced by the government’s initiatives aimed at boosting manufacturing and creating jobs. Overall, the Steel Application Outlook remains a linchpin in the broader India Steel Market revenue landscape, playing a pivotal role in driving market growth and supporting the nation's economic objectives.
India Steel Market Key Players and Competitive Insights:
The India Steel Market is characterized by a robust competitive landscape, driven by a surge in demand for steel products across various sectors including construction, automotive, and infrastructure. The market is populated by a mix of large integrated steel producers and smaller regional players, creating a multidimensional competition framework. The dynamism in the market can be attributed to factors such as technological advancements, fluctuating raw material prices, and government initiatives aimed at bolstering the manufacturing sector. Competitive insights reveal that companies are increasingly focusing on enhancing operational efficiencies, expanding product portfolios, and investing in sustainable practices to cater to a growing environmentally-conscious consumer base. This competitive fervor is reshaping the strategies of companies within the region, as they strive to establish a strong foothold in both domestic and international markets.Bhushan Steel has carved a significant niche within the Indian Steel Market through its well-established manufacturing capabilities and extensive product offerings, which include a diverse range of flat and long steel products. The company benefits from a strong distribution network that ensures its products reach various markets across India, thereby maximizing its market presence. A key strength of Bhushan Steel lies in its commitment to quality and innovation, which has enabled it to maintain a competitive edge over numerous players in the industry. Furthermore, the company's strategic focus on optimizing production processes and enhancing efficiency has resulted in cost savings that can be passed on to consumers, making their products attractive in an intensely competitive market. Additionally, Bhushan Steel's agility in adapting to market trends and consumer demands plays an essential role in its sustained growth and success.Vedanta, on the other hand, is a prominent player in the India Steel Market, known for its diverse portfolio of products that includes flat rolled products and various value-added offerings. With a strong emphasis on sustainability and technological advancement, Vedanta has positioned itself as a forward-looking entity in the sector, laying the groundwork for innovation-driven growth. The company's market presence is bolstered by its strategic mergers and acquisitions, which have expanded its operational footprint in the steel segment and enhanced its competitive capabilities. Furthermore, Vedanta's focus on cost-efficient production methods and its ability to adapt quickly to market shifts are significant strengths that enable it to respond effectively to both domestic and global demand fluctuations. As the Indian steel market continues to evolve, Vedanta's commitment to quality, along with its robust supply chain, strengthens its position as a critical player in meeting the nation's growing steel requirements.
Key Companies in the India Steel Market Include:
Bhushan Steel
Vedanta
Rashtriya Ispat Nigam
Malabar Cements
Shree Steel
Mithilesh Steel
Tata Steel
Hindalco Industries
Laxmi Group
Seshagiri Rolling Mill
Steel Authority of India
Jindal Steel and Power
JSW Steel
Essar Steel
India Steel Market Industry Developments
Recent developments in the India Steel Market have seen various companies adapting to changing economic conditions and market dynamics. For instance, Tata Steel has focused on enhancing its capacity and sustainability initiatives, while JSW Steel has made strides in expanding its production capabilities and exploring new technologies. As of October 2023, discussions about mergers and acquisitions have gained traction, especially with Jindal Steel and Power reportedly looking into strategic alliances to strengthen market presence. Growth in the market valuation of companies such as Hindalco Industries and Essar Steel has been noteworthy, largely due to increased demand for steel in infrastructure projects driven by government initiatives like the National Infrastructure Pipeline. Furthermore, the impact of global supply chain disruptions and rising raw material costs has led to price fluctuations, affecting major players such as Steel Authority of India and Rashtriya Ispat Nigam. Notably, over the last two years, the government has been actively promoting the Make in India initiative, significantly influencing local steel production, with a target to reach 300 million tonnes of steel output by 2030. These efforts collectively reflect the evolving landscape of the Indian steel industry.
India Steel Market Segmentation Insights
Steel MarketSteel Type Outlook
Report Scope:,,,,,,,,,,,,,
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2018 | 185.89(USD Billion) |
| MARKET SIZE 2024 | 200.0(USD Billion) |
| MARKET SIZE 2035 | 230.0(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 1.279% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Billion |
| KEY COMPANIES PROFILED | Bhushan Steel, Vedanta, Rashtriya Ispat Nigam, Malabar Cements, Shree Steel, Mithilesh Steel, Tata Steel, Hindalco Industries, Laxmi Group, Seshagiri Rolling Mill, Steel Authority of India, Jindal Steel and Power, JSW Steel, Essar Steel |
| SEGMENTS COVERED | Steel Type Outlook, Steel Product Outlook, Steel Application Outlook |
| KEY MARKET OPPORTUNITIES | Infrastructure development boost, Renewable energy components demand, Automotive sector growth, Real estate expansion, Green steel initiatives |
| KEY MARKET DYNAMICS | rising infrastructure demand , government initiatives and policies , volatile raw material prices , environmental regulations and sustainability , competitive pricing pressures |
| COUNTRIES COVERED | India |
Frequently Asked Questions (FAQ) :
The India Steel Market was expected to be valued at 189.97 USD Billion in 2024.
By 2035, the market value of the India Steel Market is projected to reach 207.39 USD Billion.
The expected CAGR for the India Steel Market from 2025 to 2035 is 0.54%.
In 2024, the Flat steel type is expected to dominate the market with a valuation of 95.0 USD Billion.
The market value for Long steel type is projected to be 106.39 USD Billion by 2035.
Key players in the India Steel Market include Aditya Birla Group, Tata Steel, and JSW Steel, among others
Key applications driving growth include construction, automotive, and infrastructure development
The India Steel Market is experiencing growth driven by domestic demand, making it a significant player in the regional market.
Challenges include fluctuating raw material prices and environmental regulations impacting production.
Emerging trends include increased automation and the adoption of sustainable production practices within the market.
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Research Analyst Level I In her 3 years of experience in the market research field, she has handled critical cross-domain projects. she has an in-depth knowledge of market estimation & analysis, problem-solving, primary as well as secondary research, and team management.she holds an engineering degree and is an mba professional from a well-known university, capable of evaluating the market and competitive conditions. an exceptional strategist with excellent communication skills and a passion for delivering cutting-edge & practical insights for the market. proficient in multi-tasking, and can successfully deal with competing demands, while maintaining complete confidentiality. generated business through active client and project development, networking, and high-quality responses. her knowledge and skills have helped in making solid business decisions, securing funding from investors, and avoiding business failures.
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