India Steel Market Size Value Booming at CAGR of almost 7% to Surpass USD 73.5 Billion and Volume 194 Million Tons by 2030

Published | 13 March 2024

India Steel Market is flourishing due to a spurring demand from an increasing number of large infrastructure development projects across the country driven by rapid urbanization, growing adoption of renewable energy, and thriving automotive industry.

BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated the India Steel Market size by value at USD 64.21 billion in 2023. During the forecast period between 2024 and 2030, BlueWeave expects the India Steel Market size to expand at a CAGR of 6.89% reaching a value of USD 73.55 billion by 2030. Steel Market in India is propelled by the growing population & urbanization, expanding automotive sector, augmented spending on construction and infrastructure projects, and rising steel demand. According to the Indian Steel Association, the nationwide surge in steel demand will predominantly emanate from the construction sector, fueled by government emphasis on infrastructure and affordable housing through initiatives like 'Smart Cities' and industrial corridor development. This strategic approach aims to enhance connectivity, lower logistical costs, and promote well-distributed development across Indian states. Also, the 'Make in India' initiative is expected to fortify the steel industry's growth by positioning India as a global design and manufacturing hub along industrial and freight corridors. Several Indian states are anticipated to establish automotive and ancillary industries, positioning themselves as global manufacturing hubs for export-oriented small cars, aligning with the broader objectives of the initiative. The comprehensive outlook underscores the multifaceted drivers steering India Steel Market towards robust expansion, encompassing economic, infrastructural, and manufacturing dimensions.

By volume, BlueWeave estimated the India Steel Market size at 165.56 million tons in 2023. During the forecast period between 2024 and 2030, BlueWeave expects the India Steel Market size by volume is projected to reach the volume of 194.21 million tons by 2030. Presently, India boasts an operational capacity of 161 million tons and stands as the leading global producer of sponge iron. The per capita steel consumption in India has seen a rise, ascending from 57.8 kg in 2013-14 to 81 kg in FY23. Ambitiously, the nation aims to achieve 160 kg by 2030-31 and further elevate it to 220 kg by 2047. According to the Ministry of Steel, India has established formidable targets for its steel industry, setting sights on reaching a crude steel capacity of 300 million tons by FY31 and an even more ambitious goal of 500 million tons by FY2047.

Opportunities - Increasing demand from packaging industry

The India Steel Market is set to thrive with a significant boost from the packaging industry. The future looks promising, driven by the increasing demand for sustainable packaging solutions. Steel's full recyclability aligns with the growing emphasis on environmental sustainability, making it a preferred choice. The rising global urban population and evolving lifestyle patterns have escalated the demand for packaged goods, further fueling the market growth. Anticipated technological advancements in steel production and packaging techniques, including high-strength variants and innovative designs, are expected to enhance performance and attract a broader consumer and industrial base. The ongoing trend of lightweight packaging, driven by cost optimization and reduced environmental impact, is likely to elevate the demand for packaging steel due to its attractive properties as an alternative to heavier materials.

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Impact of Escalating Geopolitical Tensions on India Steel Market

The India Steel Market grapples with substantial consequences stemming from escalating geopolitical tensions. A palpable reduction in steel demand emerges as end users exercise caution, prompting steel companies to implement noteworthy price hikes. Notably, the price of hot-rolled coils has surged to a record high of INR 65,000 per ton. The Russian invasion of Ukraine and the resultant sanctions have catalyzed a surge in raw material costs, exacerbating prevailing challenges. Despite a domestic demand downturn, steel exports have experienced a notable uptick, rising by 42% to 1.16 million ton. This geopolitical upheaval reverberates across global supply chains, creating an environment where protracted periods of elevated steel prices may endure, casting a significant impact on the entire spectrum of the steel sector in India, from production to trade dynamics.

India Steel Market

Segmental Information 

India Steel Market – By Application

Based on application, the India Steel Market is divided into Building & Construction, Electrical Appliances, Metal Products, Automotive, Transportation, Mechanical Equipment, and Domestic Appliances segments. The building & construction segment holds the highest share in the India Steel Market by application. It can be attributed to the intrinsic qualities of steel, a synthetic alloy falling under the ferrous metal category. Comprising iron, carbon, and other elements, steel is renowned for its robustness and endurance. The construction sector extensively utilizes steel due to its durability and strength, constituting approximately 40% of India's steel demand, as reported by the Joint Plant Committee (JPC) for the FY2021. Steel's prevalence in construction is further bolstered by government initiatives like the Pradhan Mantri Awas Yojna, Sardar Patel Urban Housing Project, and the 100 Smart Cities Mission, fostering the growth of the Indian steel industry. According to the Ministry of Steel (MOS) and JPC, India's steel consumption volume reached around 106 million metric tons in 2021, marking substantial progress. Initiatives like the National Bank for Financing Infrastructure and Development (NaBFID) and significant foreign direct investment (FDI) in infrastructure activities and construction further underscore the sector's potential. With infrastructure accounting for 13% of overall FDI inflows in FY 2021, the construction and building industry is poised for growth, subsequently amplifying the demand for steel in India over the forecast period.

India Steel Market – By Region

Geographically, the India Steel Market is divided into North India, South India, East India, and West India regions. The East India segment holds the highest share in the India Steel Market and is expected to maintain its dominance during the forecast period. The prominence reflects a noteworthy shift in the industrial dynamics within the Indian steel sector. The East India region, encompassing states like Odisha, Jharkhand, and Chhattisgarh, plays a fundamental role in shaping and driving India's overall steel output. Factors such as policy focus, labor availability, and access to raw materials further contribute to the region's industrial robustness. As a result, the East India segment is expected to maintain its leadership, signifying its pivotal role in the growth of the Indian Steel Market.

Competitive Landscape

The India Steel Market is fragmented, with numerous players serving the market. The key players dominating the India Steel Market include JSW Steel, Tata Steel, Jindal Steel & Power, Steel Authority of India (SAIL), Jindal Stainless, Nippon Steel, Hyundai Steel, JFE Steel Corporation, APL Apollo Tubes Ltd, Electro Steel Castings Ltd, and Godawari Power & Ispat Ltd. The key marketing strategies adopted by the players are facility expansion, product diversification, alliances, collaborations, partnerships, and acquisitions to expand their customer reach and gain a competitive edge in the overall market.

Don’t miss the business opportunity of the India Steel Market. Consult our analysts to gain crucial insights and facilitate your business growth.

The report's in-depth analysis provides information about growth potential, upcoming trends, and the India Steel Market statistics. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the India Steel Market along with industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.

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