**Policy Summary: Indian Steel Production Capacity and Government Initiatives**
This document summarizes the Indian government's response to Lok Sabha Unstarred Question No. 1426, concerning the current capacity of steel production in India, future plans for increasing production, the role of MSMEs in the steel industry, and government support mechanisms.
**Current Capacity and Production:**
As of 2024-25, India's crude steel production capacity is 200.33 million tonnes (MnT), with a production volume of 152.18 MnT. The following table details the capacity and production of crude steel over the preceding five years:
| Year | Capacity (MnT) | Production (MnT) |
| --------- | --------------- | ----------------- |
| 2020-21 | 143.91 | 103.54 |
| 2021-22 | 154.06 | 120.29 |
| 2022-23 | 161.30 | 127.20 |
| 2023-24 | 179.51 | 144.30 |
| 2024-25 | 200.33 | 152.18 |
**MSME Contribution:**
In 2024-25, secondary steel plants, including MSMEs, accounted for 94.42 MnT of the total crude steel capacity of 200.3 MnT, representing a 47% share.
**Government Initiatives:**
The government views the steel sector as deregulated and acts as a facilitator by creating a conducive policy environment. Several measures have been implemented to promote self-reliance, improve competitiveness, and reduce import dependency:
1. **Domestically Manufactured Iron & Steel Products (DMISP) Policy:** Prioritizes "Made in India" steel for government procurement.
2. **Production Linked Incentive (PLI) Scheme for Specialty Steel:** Encourages domestic manufacturing of value-added steel to reduce imports through capital investments.
3. **Steel Import Monitoring System (SIMS):** Monitors steel imports to provide detailed data to the domestic steel industry.
4. **Steel Quality Control Orders:** Bans substandard steel products, both domestically produced and imported, to ensure quality steel availability for industry and consumers.
**Contact:**
Shri Bhupathiraju Srinivasa Varma, Minister of State in the Ministry of Steel.
Key Entities Referenced
Ministry of Steel: The government ministry responsible for the steel sector in India.
SHRI ANIL FIROJIYA: Member of LOK SABHA who raised the question about steel production.
Atmanirbhar Bharat Abhiyan: Government of India initiative for self-reliance.
SHRI BHUPATHIRAJU SRINIVASA VARMA: Minister of State in the Ministry of Steel who answered the question.
MSMEs: Micro, Small and Medium Enterprises in the steel industry.
Domestically Manufactured Iron Steel Products DMISP Policy: Policy promoting the use of Made in India steel for government procurement.
Production Linked Incentive PLI Scheme for Specialty Steel: Scheme to promote manufacturing of value-added steel and reduce imports.
Steel Import Monitoring System SIMS: System for monitoring steel imports to provide details to the domestic steel industry.
GOVERNMENT OF INDIA
MINISTRY OF STEEL
LOK SABHA
UNSTARRED QUESTION NO. 1426
FOR ANSWER ON 29.07.2025
CURRENT CAPACITY OF STEEL PRODUCTION
1426. SHRI ANIL FIROJIYA:
Will the Minister of STEEL be pleased to state:
(a) the current capacity of steel production in the country along with the increase
thereof in production during the last five years;
(b) whether the Government is making any new plan to increase the production
capacity of steel in future;
(c) the share of MSMEs in the Steel industry in India;
(d) whether the Government is running any scheme to provide technical, financial and
marketing support to small and medium enterprises;
(e) the special steps taken by the Government to make the steel sector self-reliant
under the Atmanirbhar Bharat Abhiyan;
(f) whether any strategy has been made to reduce special grade steel imports in the
country; and
(g) if so, the details thereof?
ANSWER
THE MINISTER OF STATE IN THE (SHRI BHUPATHIRAJU SRINIVASA VARMA)
MINISTRY OF STEEL
(a)to(c): The following table shows the details of capacity and production of crude
steel during last five years:-
Year Capacity (in MnT) Production (in MnT)
2020-21 143.91 103.54
2021-22 154.06 120.29
2022-23 161.30 127.20
2023-24 179.51 144.30
2024-25 200.33 152.18
Share of MSMEs in crude steel capacity in 2024-25 is given below:-
Crude Steel Capacity
Year Secondary steel plants including MSMEs Total % Share
2024-25 94.42 200.3 47%
Source: Joint Plant Committee(JPC); figures in million tonnes
Contd….2/-: 2 :
(d)to(g): 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. The
government has taken several measures to make the steel sector, including MSMEs
in the sector, self-reliant and to improve the competitiveness of domestic steel
manufacturers to reduce dependency on imports 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 value-added steel within the country and reduce
imports by attracting capital investments.
iii. Revamping Steel Import Monitoring System (SIMS) for monitoring of imports to
provide granular details on imports to the domestic steel industry.
iv. Introduction of Steel Quality Control Orders thereby banning sub-standard/
defective steel products in the domestic market as well as imports to ensure the
availability of quality steel to the industry, users, and public at large.
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