Nirmala Sitharaman Invites World Steel Association to Set Up Office in India

India’s growing influence in the global steel market has prompted Union Finance Minister Nirmala Sitharaman to invite the World Steel Association (worldsteel) to establish an office in the country, highlighting its rising importance as a driver of steel demand.

Addressing the association’s General Assembly in New Delhi on Monday, Sitharaman said India had become the largest single source of growth in global steel demand, based on the association’s projections. She pointed to worldsteel’s decision to open an office in Beijing in 2006, when China was driving much of the growth in steel consumption, and called for a similar presence in India.

An office in India could improve the association’s engagement with rapidly expanding steel markets across South Asia, Southeast Asia, West Asia and Africa.

India Strengthens Its Position in Global Steel Production

India has been the world’s second-largest steel producer since 2018. According to figures cited by the finance minister, the country produced 165 million tonnes of crude steel in 2025, marking a 10% increase from the previous year. Output rose another 6% during January–August 2026, even as global production declined.

India’s share of global steel production has increased from 5.2% in 2014 to around 9%. Ministry of Steel data show that the country produced 168.4 million tonnes of crude steel and 160.9 million tonnes of finished steel in the 2025–26 financial year. Domestic steel consumption reached 163.7 million tonnes during the same period.

Infrastructure development remains a major source of demand. Construction and infrastructure account for approximately two-thirds of steel consumption in India, with highways, railways, ports and urban transport projects supporting demand.

Global Steel Overcapacity Remains a Concern

Sitharaman also called for coordinated international action to address excess steel production capacity. She argued that unilateral tariffs often redirect surplus steel between markets rather than resolve the underlying problem.

According to the minister, multilateral rules on subsidies that sustain economically unviable production facilities, backed by transparent data, are needed to address global overcapacity.

The minister also highlighted the importance of expanding speciality steel production, strengthening raw-material security, advancing technology and reducing emissions as India increases manufacturing capacity.

Balancing Growth with Cleaner Production

Global crude steel output declined 2% to 1.85 billion tonnes in 2025 and fell a further 0.7% during January–August 2026. Against this backdrop, India’s production growth highlights the contrasting performance of domestic and global markets.

For India’s steel industry, the next phase will involve meeting rising infrastructure demand while improving energy efficiency and reducing the environmental impact of production. Stronger international cooperation could also help address trade imbalances and improve transparency across the sector.

The World Steel Association, headquartered in Brussels with a second office in Beijing, represents steel producers, industry associations and steel research institutes. An Indian office would bring the organisation closer to one of the world’s increasingly important steel markets.