India is ramping up its steel consumption trajectory through aggressive infrastructure expansion under the PM Gati‑Shakti master plan and the National Industrial Corridor (NIP) initiative. With 11 major industrial corridors and over 30 linked projects, experts project steel demand to climb to 221–275 million tonnes per annum (Mtpa) by FY 2034, up from around 136 Mtpa in FY 2024.
Launched in 2021, the Gati‑Shakti National Master Plan integrates multimodal logistics-roads, rail, ports, and airports-to boost manufacturing efficiency and reduce transport times. This sweeping strategy complements corridor development by creating seamless supply chains, attracting investment, and fostering economic activity. Together, the initiatives are poised to shift infrastructure steel consumption’s share of total use to nearly 36 per cent by FY2034.
Industrial corridors such as the Delhi–Mumbai, Chennai–Bangalore, and East Coast Economic Corridors are designed as integrated economic zones. These corridors support urban agglomeration, climate-resilient infrastructure, and equitable growth beyond metropolitan hubs, elevating the demand for structural steel in factories, rail sidings, and power plants.
Steel demand forecasts are framed across three scenarios: pessimistic (221 Mtpa), realistic (252 Mtpa), and optimistic (275 Mtpa) by FY 2034. This relies heavily on sustained public capital expenditure, urbanisation plans such as Smart Cities and AMRUT, alongside manufacturing-linked incentives under the Production-Linked Incentive (PLI) schemes.
In summary, India’s dual strategy-centralising infrastructure through Gati‑Shakti and decentralising growth with industrial corridors-foreshadows a steel-demand renaissance. With demand projected to double in the next decade, the steel sector is set to play a foundational role in India’s next phase of economic development.
