India’s iron and steel industry is entering a new phase of expansion, supported by rising infrastructure investments, rapid urbanisation, manufacturing growth, and an increasing focus on sustainable steel production. According to the latest industry assessment released by Rubix Data Sciences, the sector is poised for significant long-term growth, although important challenges related to raw material security and decarbonisation remain.
Over the past decade, India has emerged as the world’s second-largest producer and consumer of crude steel, while also maintaining its position as the largest producer of sponge iron globally. The country’s contribution to global crude steel production has steadily increased, reflecting growing domestic demand and sustained investments in production capacity.
India has outlined ambitious plans to expand crude steel production capacity from around 200 million tonnes per annum to 300 million tonnes by 2030-31. Longer-term targets envision capacity reaching 400 million tonnes by 2035-36 and 500 million tonnes by 2047. Achieving these goals is expected to require investments estimated at nearly ₹17 trillion across the steel value chain.
The report highlights that urban development will remain one of the strongest demand drivers. With a substantial share of India’s population expected to reside in urban centres over the coming decades, requirements for housing, transportation infrastructure, industrial corridors, smart cities, and public utilities are projected to fuel sustained steel consumption.
Alongside capacity expansion, the industry is increasingly prioritising environmentally responsible production. The adoption of renewable energy, greater use of recycled steel scrap, and development of green hydrogen-based manufacturing technologies are gaining momentum as producers prepare for evolving global environmental standards. These initiatives have become increasingly important as international markets introduce carbon-related regulations that could influence future trade competitiveness.
Government policies continue to support the sector through initiatives aimed at promoting specialty steel production, encouraging domestic sourcing, and creating a framework for long-term industrial growth. India has also introduced a formal Green Steel Taxonomy, establishing a structured classification system based on carbon emission intensity and encouraging manufacturers to adopt cleaner production methods.
Commenting on the industry outlook, Tushar Bhaskar, President of Rubix Data Sciences, noted that while India’s steel sector has achieved substantial progress in production and consumption, future competitiveness will depend on addressing challenges such as carbon emissions, raw material dependence, and investment execution.
The report concludes that continued investments in production capacity, cleaner technologies, and supply chain resilience could position India as a leading global supplier of value-added, low-carbon steel. Combined with expanding export opportunities and supportive policy measures, the sector is expected to play a critical role in supporting the country’s industrial and economic growth ambitions over the coming decades.
