**Summary:**
This document summarizes the Indian government's response to anticipated growth in steel and metal demand, driven by urbanization and infrastructure development. The Minister of Steel, Shri H.D. Kumaraswamy, reports that the government views the steel sector as deregulated and acts as a facilitator through policy. The National Steel Policy, 2017, targets a crude steel capacity of 300 million tonnes (MT) and production of 255 MT by 2030.
Current crude steel production was 144.30 MT in 2023-24 and 152.18 MT in 2024-25, representing a 5.5% year-over-year increase. Finished steel consumption reached 136.29 MT in 2023-24 and 152.13 MT in 2024-25, an 11.6% increase.
Government initiatives to boost the steel sector include:
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:** Incentivizes domestic manufacturing of specialty steel to reduce imports.
3. **Infrastructure Expansion:** Focuses on infrastructure development through Union Budget allocations to increase steel consumption.
4. **Customs Duty Calibration:** Adjusts Basic Customs Duty on raw material imports like Ferro-Nickel and ferrous scrap to lower input costs.
5. **Steel Import Monitoring System (SIMS):** Enhances import monitoring to provide detailed data to the domestic steel industry.
Key Entities Referenced
India: The country to which the policy and steel production data relates.
Ministry of Steel: The Indian government ministry responsible for the development of the steel sector.
SHRI ANUP SANJAY DHOTRE: A member of Lok Sabha who posed the question regarding the demand for steel and metals.
SHRI H.D. KUMARASWAMY: The Minister of Steel who provided the answer to the question.
National Steel Policy, 2017: A policy document that outlines the vision for the Indian steel industry, including targets for crude steel capacity and production by 2030.
Domestically Manufactured Iron Steel Products DMISP Policy: A policy to promote 'Made in India' steel through government procurement.
Production Linked Incentive PLI Scheme for Specialty Steel: A scheme to promote the manufacturing of 'Specialty Steel' within India and reduce imports by attracting capital investments.
Steel Import Monitoring System SIMS: A system for monitoring steel imports to provide detailed information to the domestic steel industry.
GOVERNMENT OF INDIA
MINISTRY OF STEEL
LOK SABHA
UNSTARRED QUESTION NO. 2548
FOR ANSWER ON 05.08.2025
DEMAND FOR STEEL AND METALS
2548. SHRI ANUP SANJAY DHOTRE:
Will the Minister of STEEL be pleased to state:
(a) whether the Government is aware of the anticipated surge in demand for steel and
metals, driven by urbanisation and infrastructure growth;
(b) if so, the details on the current production levels and growth trends in the steel
sector;
(c) the current status of steel and metal production in India, including any notable
challenges or opportunities; and
(d) whether the Government has initiated any measures to further boost the growth of
the steel sector and if so, could you elaborate on these initiatives?
ANSWER
THE MINISTER OF STEEL (SHRI H.D. KUMARASWAMY)
(a)to(d): 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 300 million 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 144.30 MT 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.
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