**Policy Summary: Ministry of Steel - Demand for Steel and Metals (August 5, 2025)**
The Ministry of Steel has released information regarding the current state and future projections for the steel sector. As a deregulated sector, the government's role is to facilitate growth through conducive policy environments. The National Steel Policy, 2017, aims for a crude steel capacity of 300 million tonnes (MT) and production of 255 MT by 2030, driven by domestic demand from urbanization and infrastructure growth, as well as exports.
Crude steel production reached 144.30 MT in 2023-24 and 152.18 MT in 2024-25, representing a 5.5% increase year-over-year. Finished steel consumption was 136.29 MT in 2023-24 and 152.13 MT in 2024-25, an 11.6% increase year-over-year.
Government measures to boost the steel sector include:
* Implementation of the Domestically Manufactured Iron & Steel Products (DMISP) Policy to promote "Made in India" steel for government procurement.
* Launch of the Production Linked Incentive (PLI) Scheme for Specialty Steel to encourage domestic manufacturing of specialty steel and reduce imports through capital investment.
* Infrastructure expansion initiatives outlined in the Union Budget, contributing to increased steel consumption.
* Calibration of Basic Customs Duty on raw materials such as Ferro-Nickel and ferrous scrap imports to lower input costs.
* Revamping of the Steel Import Monitoring System (SIMS) to provide detailed data on imports to the domestic steel industry.
This information was provided by the Minister of Steel & Heavy Industries, Shri H.D. Kumarswamy, in a written reply in the Lok Sabha.
Key Entities Referenced
Ministry of Steel: The Indian government ministry responsible for the development of the steel sector.
National Steel Policy, 2017: A policy document that outlines the vision for the Indian steel industry, including capacity and production targets.
Domestically Manufactured Iron Steel Products DMISP Policy: A policy promoting the procurement of 'Made in India' steel for government projects.
Production Linked Incentive PLI Scheme for Specialty Steel: An initiative to boost the manufacturing of 'Specialty Steel' within India by attracting capital investments and reducing imports.
Union Budget: The annual financial statement of the Indian government, which allocates funds for various sectors, including infrastructure expansion, impacting steel consumption.
Steel Import Monitoring System SIMS: A system for monitoring steel imports to provide detailed information to the domestic steel industry.
Lok Sabha: The lower house of the Indian Parliament, where the information regarding the steel sector was presented.
Shri H.D. Kumarswamy: The Minister of Steel Heavy Industries who provided the information in the Lok Sabha.
Ministry of Steel
DEMAND FOR STEEL AND METALS
Posted On: 05 AUG 2025 4:16PM by PIB Delhi
Steel is a de-regulated sector and the Government acts as a facilitator by creating a conducive policy
environment for the development of the steel sector. National Steel Policy, 2017 envisages a crude steel
capacity of 300million tonnes(MT) and production of 255 MT by 2030 based on projections of rise in
domestic demand driven by urbanisation and infrastructure growth, exports and various other factors.
Crude steel production for the year 2023-24 and 2024-25 were 144.30MT and 152.18 MT, respectively with
5.5% change from last year. Finished steel consumption for the year 2023-24 and 2024-25 were 136.29 MT
and 152.13 MT respectively with 11.6% change from last year. To boost the growth of the steel sector,
Government has taken measures which include the following: -
i. Implementation of Domestically Manufactured Iron & Steel Products (DMI&SP) Policy for
promoting 'Made in India' steel for Government procurement.
ii. Launch of the Production Linked Incentive (PLI) Scheme for Specialty Steel to promote the
manufacturing of 'Specialty Steel' within the country and reduce imports by attracting capital
investments.
iii. Thrust in the Union Budget to infrastructure expansion which has contributed to increasing steel
consumption.
iv. Calibration in Basic Customs Duty on raw materials such as Ferro-Nickel and ferrous scrap
imports to reduce input costs.
v. Revamping Steel Import Monitoring System (SIMS) for monitoring of imports to provide
granular details on imports to the domestic steel industry.
This information was given by the Minister of Steel & Heavy Industries, Shri H.D. Kumarswamy in a written
reply in the Lok Sabha today.
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TPJ/NJ
(Release ID: 2152523)