International Research Journal of Engineering and Technology (IRJET)
e-ISSN: 2395-0056
Volume: 12 Issue: 01 | Jan 2025
p-ISSN: 2395-0072
www.irjet.net
India’s Steel Industry: Strategies and Solutions to Achieve the 300 MTPA Milestone Dr. Ramesh K ---------------------------------------------------------------------***---------------------------------------------------------------------
Abstract - India's steel industry is a cornerstone of its
over 2 million people. With rising domestic demand driven by infrastructure development and a push for sustainable manufacturing, the sector has become increasingly important, particularly in construction, which consumes 60% of India's steel. Key initiatives like PM Gati Shakti and the Smart Cities Mission have further strengthened this demand.
economic growth, driving contributions to GDP, employment, and global supply chains. This paper delves into the sector's ambitious goal of reaching a production capacity of 300 million tonnes (MnT) by 2030, as outlined in the National Steel Policy. The industry faces a range of challenges, including increasing imports, fluctuating raw material prices, environmental concerns, and infrastructure gaps. These hurdles are intertwined with India's larger industrialization and sustainability goals. Through a close look at these challenges, as well as opportunities in green steel technologies, policy changes, and infrastructure improvements, this paper presents a practical roadmap for long-term, sustainable growth. Additionally, it emphasizes the importance of collaboration between the public and private sectors, along with global partnerships, to drive innovation and boost India's competitiveness on the global stage.
In 2024, India produced 98.522 million tonnes (MT) of crude steel in the first eight months alone, marking a healthy year-on-year growth of 6.5%. This steady growth highlights India’s expanding role and influence in the global steel market. a.
India’s Steel Production Growth (2015–2025)
India's steel production has seen steady growth, rising from 90 million tonnes (MnT) in 2015 to over 150 MnT by 2025, with an annual growth rate of 5-6%. This growth is driven by strong domestic demand, government initiatives such as "Make in India," and ongoing infrastructure development. However, to meet the 2030 target of 300 million tonnes per annum (MTPA), India must double its current production capacity. Achieving this goal will require investments of Rs 10 lakh crore, along with policy reforms and the adoption of sustainable technologies. This growth trajectory highlights India's potential to become a dominant force in the global steel industry.
Key Words: National Steel Policy, Green steel, Raw material volatility, Infrastructure development, Environmental sustainability, Hydrogen-based steelmaking, Logistics optimization, Policy reforms.
1. Introduction India's steel industry is undergoing a transformative phase as it works toward ambitious growth targets while grappling with economic, technological, and environmental challenges. As the world’s second-largest steel producer, India plays a key role in both domestic and global supply chains. The National Steel Policy envisions a production capacity of 300 million tonnes by 2030, underscoring the sector's critical role in driving industrial and economic growth. Despite this potential, the industry faces significant hurdles, including rising imports, volatile raw material prices, and infrastructure gaps that could impede progress. This paper examines these challenges in detail and outlines strategies to foster sustainable growth, with a focus on green steel technologies, policy reforms, and modernization efforts.
Chart 1: India’s Steel Production (2015-2025)
2. Overview of India's Steel Production Capacity and Global Standing
b. Global Steel Production Trends (2025)
India is the second-largest steel producer in the world, contributing 18% of global crude steel production in 2024. The steel industry is a vital part of the national economy, accounting for 2% of GDP and providing employment to
China leads global steel production by a wide margin, producing over 1000 million tonnes (MnT), far outpacing all other regions. India, as the second-largest producer, still produces much less but is steadily increasing its capacity,
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