India's steel sector continues strong growth, capacity expansion set for FY30 milestone: Anand Rathi

India remains the only top ten global steel producer with consistent growth, reaching 13.289 million tonnes in January 2025. Expanding capacities are set to push installed capacity to 242 million tonnes by FY30. Odisha leads steel production, with green steel projects emerging in Punjab and Andhra Pradesh.

New Delhi [India], March 6 (ANI): India remains the only country among the top ten global steel producers to register consistent growth, according to a report by Anand Rathi Research.
The report highlighted that India's steel demand reached 13.289 million tonnes in January 2025, marking the second consecutive month of consumption exceeding 13 million tonnes.

It said, "India is one of the fastest growing steel producers globally and the only one among the top ten countries to clock consistent growth". India's share in the global steel market was around 9 per cent in January 2025, reinforcing its position as one of the fastest-growing steel producers worldwide. The country had surpassed Japan in 2018 to become the second-largest steel producer, and its growth trajectory continues to be strong.

To cater to the increasing domestic steel demand, manufacturers across different tiers are expanding their production capacities. Tier-I companies, which have over 10 million tonnes of installed capacity, along with tier-II and III manufacturers, which have capacities between 1 million and 10 million tonnes, are actively adding new production lines.

This expansion is expected to push India's crude steel installed capacity to approximately 242 million tonnes by the financial year 2030 (FY30), with estimated production reaching between 210 million and 220 million tonnes.

The domestic steel consumption is projected to range between 190 million and 210 million tonnes by then. Among Indian states, Odisha holds the highest installed steel capacity at around 18 per cent. The top five states--Odisha, Jharkhand, Chhattisgarh, Maharashtra, and Karnataka--collectively account for about 68 per cent of India's total installed steel capacity and lead in iron ore production, contributing around 97 per cent of the country's total output.

As capacity expansion continues, Odisha's share in installed capacity is expected to rise to 25 per cent by FY30. Additionally, green steel production capacities are being developed in Punjab and Andhra Pradesh, further strengthening India's steel manufacturing footprint.

During the first ten months of FY25 (April 2024 to January 2025), India's crude steel production increased by approximately 4.5 per cent year-on-year (y/y) to 124.919 million tonnes, compared to 119.493 million tonnes in the same period of FY24.

With a steady increase in consumption and production, India is poised to strengthen its role in the global steel industry while ensuring sustained domestic supply. (ANI)