India to Manufacture High-Grade Steel for Automobile Sector, Cut Import Dependence

India’s steel industry is preparing for a major transformation with a strong focus on producing specialised high-grade steel required in the automobile sector, Union Minister for Steel and Heavy Industries H.D. Kumaraswamy said. The initiative aims to reduce the country’s long-standing dependence on imports while strengthening India’s Make in India mission.

Speaking at the annual convention of the Society of Indian Automobile Manufacturers (SIAM), Kumaraswamy underlined the growing demand for high-grade steel, which is not only vital for automobiles but also critical for defence and other strategic industries. For decades, India has relied heavily on imports to meet this demand, creating supply chain vulnerabilities. By developing domestic capacities, the government hopes to provide the auto industry with reliable, cost-efficient steel while boosting national self-reliance.

The minister highlighted that as of March 2025, companies under the Production Linked Incentive (PLI) scheme for the automobile sector have invested more than ₹29,576 crore in capital expenditure. These investments include setting up new production facilities and advanced technology units, driving innovation and manufacturing capabilities within India. The scheme has also generated thousands of direct and indirect jobs across manufacturing, supply chain operations, and research and development.

Kumaraswamy assured the auto sector that the Steel Ministry will act as a strong enabler, working closely with automakers, technology providers, and energy companies to meet India’s domestic sustainability goals. He urged stakeholders to embrace bold innovations rather than incremental changes, making India a hub for sustainable mobility solutions and green steel production.

The government believes that specialised high-grade steel production will not only meet local demand but also position India as a future global exporter of automobile-grade steel. With rising mega-projects and rapid industrialisation, this move is expected to accelerate India’s journey towards becoming a world leader in steel and automobile manufacturing.