Specialty Steel PLI Scheme Attracts Rs 25,200 Crore Investment by 35 Companies

India’s push to promote domestic manufacturing is picking up speed, with 35 companies pledging a whopping Rs 25,200 crore to drive the specialty steel industry under the Production Linked Incentive (PLI) scheme of the government. The Ministry of Commerce and Industry has officially stated that the Ministry of Steel is close to finalizing formal agreements, to be finalized via Memorandums of Understanding (MoUs).

This expansion is a major step towards increasing India’s steel production capacity, reducing dependence on foreign imports, and serving the government’s overall vision to boost manufacturing and export growth in 14 key industries. As India charges ahead on this game-changing path, the ripple effects could reshape both the domestic economy and the global market.

The government has granted Rs 3,600 crore incentives for such initiatives, and Rs 2,000 crore is to be paid out at the time the scheme concludes. The PLI scheme has proven to be a game-changer when it comes to investment and economic development. Overall investment across all sectors covered under the PLI has reached over Rs 1.61 lakh crore till November 2024, and the resulting production and sales figure out at Rs 14 lakh crore. The scheme has generated over 11.5 lakh direct and indirect employment opportunities.

One of the key impacts of the PLI schemes has been on exports, which have gone over Rs 5.31 lakh crore. Large-scale electronics manufacturing, pharma, food processing, and telecom and networking products have been key drivers. Incentives of Rs 14,020 crore have been given till now in 10 sectors, namely IT hardware, bulk drugs, medical devices, automobiles, and white goods. In an attempt to promote increased participation in the specialty steel industry, the government introduced the second phase of the PLI scheme on January 6, 2025. The second phase introduces a specific web portal, extensive media outreach, regular webinars with prospective investors, and lenient rules of participation. Most importantly, firms investing in the upgradation of capacities already installed can now invest 50 per cent of the total investment in such capacities.

Through these steps, India hopes to increase its steel production capacity, lower import dependence, and improve global competitiveness. With policy reforms and investment inflows, the specialty steel sector is set to grow exponentially, supporting India’s vision of becoming a world leader in high-value manufacturing and exports.