India Accelerates Steel Capacity Expansion as 2030 Target Enters Final Stretch

India’s steel sector is entering a critical phase as the country moves closer to its ambitious goal of achieving 300 million tonne of installed steelmaking capacity by 2030. With barely five years left, the central government has sharpened its focus on expanding capacity while simultaneously addressing sustainability, raw material security and the growing need for high-grade and speciality steel.

India is already the world’s second-largest crude steel producer, and demand remains well supported by large-scale infrastructure development, housing construction, railways, automobiles, defence manufacturing and capital goods. Government-led programmes such as PM Gati Shakti, the National Infrastructure Pipeline and Make in India have played a major role in sustaining consumption and providing long-term visibility for steel producers.

Under the National Steel Policy announced in 2017, India aims not only to reach 300 million tonne capacity but also to achieve production of 250 million tonne and raise per capita steel consumption to 160 kg by 2030–31. According to industry estimates, the country will need to add nearly 65 million tonne of new capacity over the next five years to stay on track. Capacity additions so far have been driven by a mix of brownfield expansions and greenfield projects across both public and private sector companies.

However, the sector is not without challenges. Rising imports, volatile raw material prices and global trade uncertainties continue to weigh on domestic producers. To counter these pressures, the government has imposed safeguard and anti-dumping duties on select steel products while also encouraging the production of value-added steel through the Production Linked Incentive scheme for speciality steel.

A major shift underway is the push towards green steel. Policymakers are encouraging low-carbon technologies, renewable energy integration, higher scrap usage and exploration of hydrogen-based steelmaking routes. These steps are increasingly important as global markets tighten carbon norms and demand cleaner steel.

Industry bodies such as the Indian Steel Association have acknowledged the progress made so far but stress that faster execution, stable policies and continued investment will be critical. As demand outlook remains resilient, the next few years will determine whether India can meet its steel ambitions while building a globally competitive and sustainable industry.