India is confident of achieving its ambitious target of 300 million tonnes of steel production capacity by 2030–31, according to Steel Secretary Sandeep Poundrik. The government is doubling down on efforts to support domestic manufacturing while addressing rising steel imports, primarily from China.
Speaking on Thursday, Poundrik said the country is well-positioned to scale up production, citing current momentum in infrastructure, energy, and manufacturing sectors as key demand drivers. India’s crude steel production reached 151.1 million tonnes in FY 2024–25, with an existing total steelmaking capacity of nearly 200 million tonnes.
Import Pressure and Policy Response
India, currently the world’s second-largest crude steel producer, has seen an uptick in steel imports over the past two years. Provisional government data indicates that steel imports rose to 9.5 million tonnes in FY 2024–25, marking a nine-year high. In response, the government imposed a temporary 12% import tariff on select steel products to counter the influx of low-cost shipments and protect domestic players.
The surge in imports—particularly from China—has triggered concerns among Indian producers about pricing pressures and market disruption. The tariff measure is aimed at stabilising domestic prices and ensuring that Indian mills maintain capacity utilisation as they ramp up towards long-term targets.
Also read: India Tightens Steel Import Rules
Strengthening Domestic Supply for Strategic Sectors
With strong growth projections in sectors such as construction, railways, defence, and renewable energy, steel demand in India is expected to remain robust over the next decade. The expansion of domestic capacity is being positioned as a strategic move to support national self-reliance, reduce import dependence, and build resilience in industrial supply chains.
As India works towards its National Steel Policy goals, the government continues to emphasise investments in green steel, infrastructure modernisation, and value-added steel production—critical levers for sustainable and globally competitive growth.
