India has reached its target steel production capacity of 205 million tons per year in the 2024/2025 fiscal year, advancing toward its strategic goal of 300 million tons annually by 2030/2031, according to MP Financial Advisory Services LLP. As the world’s second-largest steel producer after China, India is posting some of the highest growth rates globally. Between 2016 and 2024, its average annual production growth stood at 5%, compared to China’s 2.76% and the global average of 1.77%. Since 2020, India’s growth has surged to 8% annually, while Chinese output has begun to decline.

To meet future targets, projects are underway to add 167 million tons of capacity by 2030, with the private sector—responsible for 83% of current output—leading the charge. Government support includes raw material access and incentives for specialized steel under the Production Linked Incentive (PLI) scheme.

Key challenges remain, including 85% dependence on imported coking coal, scrap shortages, high carbon intensity, and competition from low-cost imports. Still, India is investing in modernization, green technologies, and boosting domestic consumption, which at 93.4 kg per capita remains well below the global average of over 219 kg but is rising steadily.