Understanding Global Market Shifts in India’s Steel Industry
Over the past five years, global steel production has softened, exports surged from China, margins tightened, and demand plateaued among developed economies. Despite this, India bucked the trend: between 2019–2024, global output slipped ~1% while India’s steel production jumped around 33%—establishing it as a rare bright spot.
Why? Massive infrastructure push roads, smart cities, railways and industrial growth, all backed by National Steel Policy and PLI incentives. Domestic demand surged nearly 7–10% in FY25, keeping mills busy even as world steel prices dipped.
What is the outlook for steel industry in India 2025
Smart Manufacturing & AI
Companies like Tata Steel and JSW Steel have invested heavily in AI-driven capabilities—yield forecasting, predictive maintenance, energy optimization, and realtime quality controls. JSW’s “Athena” project and Tata’s “Smart Leap” initiative highlight large-scale digital transformation.
Green Steel in India
India is yet to build many new plants, giving it a chance to invest in cleaner technologies early. The industry is moving toward electric arc furnaces (EAFs), Direct Reduced Iron (DRI), and carbon capture methods. Leading firms are exploring innovative processes like HIsarna (lowemission ironmaking).
At the same time, EU’s Carbon Border Adjustment Mechanism (CBAM) is creating global pressure. Indian producers are accelerating sustainability to stay export competitive.
Trade Turbulence & Safe Havens
Cheap Chinese and Southeast Asian steel exports have triggered antidumping and protectionist measures globally. India is responding with its own safeguards and shifting exports to more accessible markets such as ASEAN, Africa, and Middle East.
What This Means for Indian Manufacturers
Opportunities to Grow
- India is fast becoming the world’s focus for demand growth—with production likely to reach 240–260 Mt by 2035 at ~6% CAGR.
- Local consumers from builders to automakers prefer homegrown steel. That’s huge support for domestic mills.
Positives for MSMEs & SMEs
Smaller manufacturers can benefit from:
- Strategic tie-ups with large steel players for scrap supply or rolling services.
- AI-augmented vendor systems (e.g., predictive delivery, quality tracking).
- Government-led scrap recycling and green steel policies reduce barriers to entry.
How India’s Top Steel Players Are Navigating the Shift
Here’s a snapshot of five leading names—what they’re doing to lead:
Tata Steel
- Global reach & deep digital integration via Smart Leap.
- Vision includes AI-powered logistics, predictive analytics, and energy-efficient operations.
JSW Steel
- India’s largest capacity; aggressive expansions at Vijayanagar & Dolvi plants via mega ₹1 lakh crore investments.
- Bold focus on green steel and hydrogen-powered facilities.
SAIL (Steel Authority of India Ltd.)
- Public sector backbone in infrastructure, investing in modernization and capacity expansion.
JSPL (Jindal Steel & Power Ltd.)
- Expanding Odisha’s Angul plant to 25 MTPA by 2030 with coal-gasification and green hydrogen tech.
AM/NS India
- JV bringing global steelmaking technologies into India, focusing on value-add and export competence.
Challenges Ahead and How to Play Smart
- Margin pressures persist due to raw material volatility and global dumping threats. For example, JSW’s Q3 net profit fell nearly 50% YoY
- Need for strategic green investments. CBAM and sustainability mandates are forcing mills to adopt cleaner production or risk losing export access.
- Structural transition. To meet decarbonization goals, BFBOF routes must make space for EAFs; but appraising scrap supply and renewable energy remains crucial
How Indian Steel Manufacturers Can Stay Ahead
- Invest in digital infrastructure: IoT, predictive AI, real-time analytics.
- Transition toward low-carbon models like EAFs and hydrogen-based DRI.
- Use strong vendor ecosystems—engage SMEs in value chain for agility.
- Adapt to trade shifts by exploring new markets and export models.
- Strengthen ESG reporting to access better capital and global partnerships.
India leads global steel growth—as other economies stall, it sells hope, homes, and infrastructure. But as it scales, it must balance growth with sustainability. And smart SMEs can ride the wave—by partnering, adapting, and innovating alongside giants.
From 2020 to 2025, Indian steel went from steady to standout. As 2030 approaches, the real winners will be those who build smart, responsible, and future-ready steel—whether big or small.
Information courtesy