India Can Grow Steel Industry on Domestic Demand, Says Naveen Jindal

India’s steel industry has enough room to grow through domestic demand and does not need to depend heavily on the United States as an export market, Jindal Steel Chairman and Member of Parliament Naveen Jindal said.

Speaking to reporters on the sidelines of the 53rd National Management Convention 2026, Jindal said India’s large domestic market could absorb higher steel production, limiting the impact of higher US tariffs on Indian steelmakers.

Indian steel products have faced high tariffs in the US market for several years. Jindal said that even when tariffs were at 50 per cent, Indian steel exports to the US remained limited, making the domestic market more important for future industry growth.

A key factor supporting his view is India’s relatively low per capita steel consumption. Jindal said consumption is around 107 kg per person annually, compared with a global average of more than 220 kg. The gap, he said, indicates considerable scope for demand to expand as infrastructure development and industrial activity continue.

Recent data from the Ministry of Steel also points to continued domestic demand. Finished steel consumption rose 7.9 per cent year on year to 56 million tonnes during April to July 2026, while crude steel production stood at 56.2 million tonnes during the period.

India’s National Steel Policy 2017 has set a long term target of 300 million tonnes of crude steel production capacity and 255 million tonnes of actual production by 2030 to 31. The expansion of infrastructure, construction and manufacturing is expected to remain important to achieving these targets.

Jindal also said Indian steel producers would need to comply with European Union rules, including requirements linked to the Carbon Border Adjustment Mechanism. He noted that exporters would have to follow the conditions applicable to products entering the European market.

Another area highlighted by Jindal was domestic coal gasification. He said greater use of domestic coal could help reduce dependence on imported natural gas. Around 22.6 million tonnes per annum of coal gasification capacity was operational or under implementation in India as of July 2026, according to the Ministry of Coal data cited in the report.

Jindal also said steelmakers were working to reduce emissions as the industry moves towards lower carbon production.