Policy push, infra growth fuel India’s steel sector upcycle

Steel consumption in the country continues to grow at a high rate. In FY24, India used 136.29 million tonnes (MT) of finished steel, and between April and January of FY25, usage had already reached 124.8 MT – showing that demand remains solid.

Government policies are also boosting the value-added steel segment. Under the Production-Linked Incentive (PLI) Scheme for Specialty Steel, which has a budget of Rs 6,322 crore, the government aims to add around 25 MT of new specialty steel capacity and attract about Rs 40,000 crore in fresh investments. By early 2025, investments worth Rs 27,106 crore had already been committed, and another Rs 17,000–Rs 25,200 crore was expected in the second round.