The Indian government is introducing the next phase of its Production-Linked Incentive (PLI) scheme for the steel sector, called ‘PLI scheme 1.1’. This initiative aims to ramp up domestic production of specialty steel while reducing reliance on imports, aligning with the nation’s goal to strengthen its steel industry. The scheme follows the success of the first PLI program, launched in 2020, which attracted investments worth Rs 27,106 crore and generated over 14,700 jobs.
By November 2024, investments had already reached Rs 18,300 crore, creating more than 8,660 direct job opportunities. However, despite these achievements, the demand for high-grade steel in critical sectors like defence, automotive, and electricals remains unmet. To address this gap, the new scheme targets the production of high-quality specialty steel, which is crucial for the advancement of key industries.
The government has worked closely with industry stakeholders to fine-tune the scheme and encourage further investment in the sector. Initially launched during the COVID-19 pandemic to stimulate domestic manufacturing, the PLI program has expanded its reach to cover steel, aiming to boost both production and innovation. The 2025 PLI initiative is expected to reinforce India’s competitive position in the global steel market and strengthen its manufacturing base.
