India is preparing for a major expansion in its steel production capacity, with plans to raise annual output capability from around 200 million tonnes to 300 million tonnes by 2030. This growth is expected to fuel demand for raw materials such as iron ore and coking coal, while also requiring significant improvements in rail, port, and road infrastructure to support transportation and logistics.
At present, domestic steel production is estimated at about 289 million tonnes per year for FY25, which is below the levels required to meet the projected capacity and demand in the coming years. The shortfall has increased reliance on imported iron ore and other raw materials. This situation highlights the urgency of building stronger supply chains and transport infrastructure to ensure efficient raw material movement across the country.
To address these challenges, the government is formulating frameworks for global raw‑material sourcing and technology cooperation. The strategy involves collective action by both public and private steel producers to negotiate better terms for procurement, diversify supply sources, and secure competitive pricing for essential raw materials. Such collaboration is also expected to reduce input costs and enhance the competitiveness of India’s steel sector in global markets.
The capacity expansion plan aligns with the country’s infrastructure development goals, including large-scale investments in construction, transportation, and manufacturing. With a significant share of the planned capacity yet to be built, the next few years will be critical for establishing sustainable raw‑material supply chains, deploying advanced steelmaking technologies, and supporting the sector’s decarbonisation targets.
