The Indian government’s strategic focus on infrastructure development and decarbonization is set to significantly boost the domestic steel industry. With a 10 per cent increase in capital expenditure for the fiscal year 2025–26, totaling ₹11.2 trillion (approximately $129 billion), the government aims to drive economic growth and increase steel demand through investments in green technologies and infrastructure projects.
A major share of this capital is allocated to infrastructure sectors like shipbuilding, renewable energy, and clean technology. These investments are expected to increase steel demand in construction, transport, and energy. Programs like the National Green Hydrogen Mission and funding for solar and wind energy projects form key parts of the government’s decarbonization strategy.
The government has also introduced measures to support micro, small, and medium enterprises (MSMEs), vital contributors to the economy. The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) provides collateral-free loans, while the MSME Credit Card scheme simplifies working capital access for small businesses.
The Ministry of Steel has outlined plans for decarbonizing steel production by adopting green technologies, improving energy efficiency, and increasing recycled material usage. These initiatives align with India’s climate goals and aim to establish the steel sector as a leader in sustainable manufacturing.
By combining infrastructure development, MSME support, and green technology adoption, the government’s approach is expected to transform the steel industry and meet rising domestic demand sustainably.
