India’s steel demand reaches over 13 million tonnes in Jan 2025, expected to reach a production capacity of 210-220 million tonnes in 2030. The domestic steel consumption is projected to increase between 190 million and 210 million tonnes by 2030. 

Mar 11, 2025

India continues to stand out as the only country among the top ten global steel producers to achieve consistent growth, according to a report by Anand Rathi Research. 

The report reveals that India’s steel demand reached 13.289 million tonnes in January 2025, marking the second consecutive month with consumption surpassing 13 million tonnes.

India’s share in the global steel market reached approximately nine per cent in January 2025, reinforcing its position as one of the fastest-growing steel producers worldwide. Surpassing Japan in 2018 to become the second-largest steel producer, India’s growth trajectory remains strong. To meet rising steel demand in India, manufacturers across various tiers are expanding production capacities, with Tier-I companies having over 10 million tonnes of capacity, along with Tier-II and Tier-III manufacturers adding new production lines. 

This expansion is expected to boost India’s crude steel installed capacity to about 242 million tonnes by FY30, with production expected to reach 210-220 million tonnes. Domestic steel consumption is projected to increase between 190 million and 210 million tonnes by FY30. 

Among Indian states, Odisha leads with the highest installed steel capacity, accounting for 18 per cent, while the top five states include Odisha, Jharkhand, Chhattisgarh, Maharashtra, and Karnataka, collectively representing 68 per cent of the country’s steel capacity and producing 97 percent of the nation’s iron ore. Further expansion of green steel production capacities in Punjab and Andhra Pradesh is set to enhance India’s steel manufacturing footprint.  During the first ten months of FY25, India’s crude steel production rose by 4.5 per cent year-on-year, reaching 124.919 million tonnes.

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With continuous growth in both consumption and production, India is positioned to solidify its position as a global steel provider, ensuring a stable domestic supply.