Steel Consumption in India Projected to Grow 9–10%: Steel Secretary

India’s steel sector is expected to witness strong demand momentum this year, with consumption projected to grow by 9–10%, according to Sandeep Poundrik, Secretary, Ministry of Steel. He highlighted that the growth is being driven by GST 2.0 reforms, resilient domestic demand, and effective government safeguards against cheap imports.

The construction sector, automobiles, and consumer durables are expected to be the key growth drivers. Reduced GST rates on cement, vehicles, and household appliances are encouraging higher production and investment, leading to increased steel consumption. Poundrik noted that India remains the only major economy recording double-digit steel demand growth consistently for the last three years.

He added that government measures, such as safeguard duties and ongoing anti-dumping investigations, are providing stability to the sector. Imports from China have declined sharply, and provisional duties are helping protect domestic producers. With these protections in place, steel prices are expected to stabilise, offering improved revenue visibility for the industry.

The positive outlook is further supported by the end of the monsoon season, which typically triggers higher construction activity. Poundrik expressed confidence that the combined impact of GST reforms, seasonal demand, and policy measures will keep India’s steel sector on a strong growth trajectory in the coming months.

Industry data already shows healthy momentum. Between April and August this year, steel consumption grew by more than 8%, and the trend suggests stronger performance in the second half. Export activity has also improved, while imports have reduced significantly, ensuring a better pricing balance for domestic players.

Looking ahead, the Indian steel industry is expected to benefit from long-term infrastructure development plans, housing demand, and continued policy support. Poundrik emphasized that with a target of reaching 300 million tonnes of capacity by 2030, the sector is well-positioned to remain a global growth leader.

For stakeholders, the current environment indicates robust demand, stable prices, and a favourable policy framework — strengthening India’s position as one of the fastest-growing steel markets worldwide.