India Steel Market is expected to grow at a CAGR of 8.28% Through 2030

Rising demand for automobiles & infrastructural growth and government initiatives like “Smart City Mission” are factors driving the market growth of the India Steel Market in the forecast period.

According to TechSci Research report, “India Steel Market - By Region, Competition, Forecast & Opportunities, 2030F”, India Steel market was valued at USD 102.67 Billion in 2024 and is expected to reach USD 166.96 Billion by 2030 with a CAGR of 8.28% during the forecast period. The demand for steel in India has witnessed significant growth, primarily driven by the booming infrastructure and construction sectors. Steel is a vital material in the construction of buildings, bridges, roads, and other infrastructure projects. With the government's strong push for urbanization and infrastructure development through initiatives like the Smart Cities Mission, Housing for All, and the National Infrastructure Pipeline, the demand for steel in India is set to remain robust. The rapid growth of the Indian economy has resulted in an increase in the construction of commercial, residential, and industrial buildings. Steel, due to its strength, durability, and cost-effectiveness, is the preferred material for building structures. Additionally, the demand for steel is rising as the country focuses on large-scale infrastructure projects such as airports, highways, ports, and railways. These projects require vast amounts of steel, which is expected to propel market growth. Furthermore, the growth in the real estate sector is another major factor driving steel demand. The Indian real estate market is poised for significant expansion, with urban areas witnessing a surge in residential and commercial developments. Steel is essential in the construction of high-rise buildings and residential complexes, making it an integral part of the real estate boom.

The government's increased focus on the development of smart cities and industrial corridors, like the Delhi-Mumbai Industrial Corridor (DMIC), has created a conducive environment for steel demand. These projects require extensive use of steel for both construction and transportation infrastructure, creating new opportunities for steel manufacturers in India. In addition to traditional infrastructure, India is also seeing a rise in the demand for sustainable and green construction practices, further bolstering the demand for high-strength, lightweight, and recyclable steel. The focus on sustainability and reducing the carbon footprint of construction materials is creating new opportunities for innovation in the steel industry.

As the Indian economy continues to grow, the demand for steel in the infrastructure and construction sectors will remain a key driver of the market, leading to an expansion of production capacity and the development of new steel products tailored to meet the needs of these industries.

Based on Application, The building and construction segment has been a dominant force in the Indian steel market, driving a substantial portion of the demand for steel products. With the rapid urbanization and expansion of infrastructure across India, the need for high-quality steel in construction has skyrocketed. Steel is a crucial material for a wide range of construction applications, including residential buildings, commercial complexes, bridges, roads, and airports. The government's focus on infrastructural development, especially through initiatives such as the Smart Cities Mission and Pradhan Mantri Awas Yojana, has significantly boosted the demand for steel in the country. This demand is expected to continue growing as more urban areas expand and new cities emerge. India’s booming real estate sector is another key factor contributing to the dominance of the building and construction segment in the steel market. As more residential and commercial projects are launched, the demand for steel products such as rebars, structural steel, and steel plates is increasing. These materials are essential for ensuring the strength and durability of buildings and structures, making steel a critical element in the construction process. Additionally, the growing trend of industrialization in tier-2 and tier-3 cities, along with the increasing number of infrastructure projects in transportation and utilities, has further expanded the role of steel in construction. Advancements in steel production technologies and the introduction of more specialized steel grades have enhanced the performance and sustainability of construction materials, driving further growth. High-strength steel variants are being increasingly used in high-rise buildings and infrastructure projects, which require materials that can withstand extreme stress and weather conditions. The Indian steel industry is also benefiting from a focus on reducing carbon footprints, as the construction sector increasingly adopts environmentally-friendly and efficient materials. As a result, the building and construction segment is set to remain a key pillar of the Indian steel market in the coming years.

Based on region, East India is the fastest growing region in the India Steel Market,  primarily due to its abundant raw material resources, including iron ore, coal, and limestone, which are essential for steel production. The region houses several key steel-producing hubs, such as Odisha, Jharkhand, and West Bengal, which contribute significantly to the overall steel output in the country. With the increasing investments in infrastructure, automotive, and manufacturing sectors, demand for steel in East India is seeing a rapid surge. The strategic location of major steel plants, along with favorable government policies and initiatives to boost industrial growth, has created a conducive environment for the steel industry to thrive in this region. East India's industrial growth is being fueled by ongoing government initiatives aimed at developing infrastructure and boosting manufacturing output. Large-scale projects in the construction of roads, bridges, and residential complexes, coupled with the growth of industrial parks and ports, are increasing the demand for steel in the region. The region's proximity to key markets in Southeast Asia and its strong manufacturing base provide a significant advantage for the export of steel products. As East India continues to develop its industrial capabilities and improve connectivity, the region is expected to maintain its position as the fastest-growing market in the Indian steel industry.

Key market players in the India Steel Market include:

• JSW group
• Tata Steel Limited
• Steel Authority of India Limited (SAIL)
• Jindal Steel & Power Limited
• ArcelorMittal India Private Limited
• Outokumpu
• POSCO 
• Rashtriya Ispat Nigam Limited

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“The Indian steel market is poised for significant growth, driven by a range of emerging opportunities. One of the key drivers is the government’s emphasis on infrastructure development, particularly through initiatives like the National Infrastructure Pipeline (NIP) and the Atmanirbhar Bharat campaign, which aim to enhance domestic manufacturing and reduce dependence on imports. The growing demand for steel in sectors such as construction, automotive, and renewable energy, combined with urbanization trends and the push for smart cities, presents substantial growth potential. Additionally, the adoption of advanced steel production technologies, like green steel and sustainable practices, can help meet both domestic needs and international environmental standards. With increasing foreign direct investment (FDI) and a burgeoning focus on exports, India’s steel market is well-positioned to capitalize on these opportunities, fostering innovation, creating jobs, and bolstering the economy. Therefore, the market growth of steel in India is expected to rise in the upcoming years” said Mr. Karan Chechi, Research Director with TechSci Research, a research-based global management consulting firm.

“India Steel Market, By Type (Flat, Long), By Application (Building & Construction, Automotive, Consumer Goods, Heavy Industry, Others), By Product Type (Bar, Wire Rod, Hot Rolled Sheets, Cold Rolled Sheets, Others), By Region, Competition, Forecast & Opportunities, 2030F”, has evaluated the future growth potential of India Steel Market and provides statistics and information on market structure, size, share, and future growth. The report is intended to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities present in the India Steel Market.

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