New Delhi: India’s steel industry continues to expand even as global steel production declines, with strong domestic demand supported by infrastructure spending helping the country maintain momentum in production, Finance Minister Nirmala Sitharaman said in World Steel Association’s (Worldsteel) General Assembly.
Her remarks highlight India’s growing importance in the global steel market, driven by infrastructure development, construction activity and the country’s expanding industrial base. India’s steel industry is strengthening its position in the global market, with crude steel production rising by 10% in 2025 to 165 million tonnes and increasing by a further 6% during January–August 2026, even as global steel output declined. India’s share of worldwide steel production has also expanded significantly, rising to approximately 9% from 5.2% in 2014, reflecting the country’s growing manufacturing capacity, robust domestic demand and sustained infrastructure investment. This growth underscores India’s emergence as a major driver of the global steel industry, supported by investments in roads, railways, housing and industrial development.
Infrastructure Spending Supports India’s Steel Demand
India’s infrastructure push has emerged as a major driver of steel consumption. Investments in roads, railways, bridges, urban infrastructure, housing and industrial projects are supporting demand for steel across the economy.
Steel is a critical input for infrastructure development, and sustained public capital expenditure can help create long-term demand for the metal. India’s expanding manufacturing sector and construction activity are also contributing to the industry’s growth.
India Strengthens Its Position in the Global Steel Market
While several global steel-producing economies face weaker output and demand conditions, India’s steel sector has continued to benefit from domestic consumption.
The country’s large infrastructure requirements, urbanisation and industrial development provide a strong foundation for steel demand. This domestic demand base can help Indian producers navigate fluctuations in international markets.
India’s expanding steel production capacity also strengthens its position as a major player in the global steel industry.
Steel Industry Growth Creates Economic Opportunities
The expansion of the steel sector has implications beyond steel manufacturing. The industry supports a broad supply chain involving iron ore mining, coking coal, transportation, logistics, engineering, equipment manufacturing and construction.
Higher steel production and consumption can support industrial activity, employment and investment across these interconnected sectors.
However, the industry’s long-term competitiveness will also depend on production costs, raw material availability, trade conditions and the ability to adopt cleaner manufacturing technologies.
Decarbonisation Remains a Key Challenge
As India expands steel production, reducing the sector’s carbon intensity will remain an important priority. Steel manufacturing is energy-intensive, and the transition towards lower-emission production will require technological improvements, greater energy efficiency and the adoption of cleaner fuels and production processes.
Balancing rising steel demand with sustainability goals will be essential for maintaining India’s competitiveness in international markets.
Outlook for India’s Steel Sector
India’s steel industry is positioned to benefit from continued infrastructure investment, urbanisation and industrial expansion. Strong domestic consumption provides an important cushion against weakness in international markets.
The outlook will depend on the pace of infrastructure execution, private investment, global steel prices and the industry’s ability to manage input costs and environmental requirements.
Sitharaman’s remarks underscore the importance of domestic demand in supporting India’s steel industry and strengthening its role in the global steel market.
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