India’s infrastructure surge is increasingly fueling the nation’s steel industry. Industry experts note that 65 per cent of India’s steel consumption now comes from infrastructure and construction, with 25–30 per cent of that geared toward government-funded projects. This highlights the pivotal role of sectors like roads, railways, and urban development in sustaining demand for steel.
Government investment has ramped up notably. Per a Deloitte‑backed report, India’s steel demand is projected to grow by over 5 per cent annually, potentially reaching 221–275 million tonnes by FY2034 under the PM Gati Shakti master plan and other infrastructure initiatives. The National Infrastructure Pipeline-valued at nearly $1.2 trillion-continues to activate large-scale projects including industrial corridors, freight corridors, and housing programmes, all of which lean heavily on structural steel.
This burgeoning infrastructure push is mirrored by steelmakers’ success in cutting imports and enhancing domestic production. India’s steel imports declined nearly 29 per cent in Q2, signaling strong local demand and import curbs; meanwhile, domestic production rose 11.2 per cent to 40.6 MT and consumption increased 7.9 per cent to 38.3 MT despite global headwinds.
India’s infrastructure and construction boom-spurred by flagship programmes such as PM Gati Shakti and Bharatmala-is reshaping steel demand. As government projects consume up to a third of the industry’s output, this sustained momentum is key to driving future steel growth across the country.
