Amid rising steel imports, the Indian steel industry is looking forward to policy initiatives in 2025 to safeguard its interests. The industry’s challenges include achieving a 300 MnT capacity target amidst volatile raw material prices and transitioning to clean manufacturing processes with the government’s green steel production push to reduce greenhouse gas emissions.
Government intervention is essential for the industry’s expansion towards a 300 MnTPA capacity by 2030, requiring investments of around Rs 10 lakh crore. From April to September 2024, steel imports rose by 41% to 4.70 MnT, while exports fell by 36% to 2.31 MnT. In response to cheap imports from China and other countries, the Ministry of Steel has proposed a 25% safeguard duty on certain steel products. Global counterparts like the EU, Brazil, Mexico, and the US are also protecting their domestic markets.
The government’s introduction of green steel taxonomy aims to promote cleaner practices, reduce blast furnace emissions, and encourage gas-based methods. For 2025, the industry expects capacity to rise to 195 MnT, with production at 158 MnT and consumption at 155 MnT. Policy support is needed for raw material production and imports, especially given higher input costs in 2024. The stainless-steel sector calls for a separate policy to improve capacity utilization beyond the current 60% and support sustainable urban development and smart city projects.
With a focus on policy support, clean manufacturing, and addressing import challenges, the Indian steel industry aims to navigate 2025 with resilience and strategic growth.
