“With the government’s commitment to long-term infrastructure spending and the industry’s readiness to respond with scale and innovation, the future of “Made in India” steel looks strong and well-supported.” Vedant Goel, Director, Enlight Metals
India’s infrastructure growth is steadily becoming a powerful engine for domestic steel demand. From the highways stretching across states to metro rail networks in cities and greenfield airports in tier-2 towns, public projects are emerging as the key pillars pushing the steel sector forward. As the government continues to focus on building physical infrastructure through schemes like Gati Shakti, PM Awas Yojana, and the National Infrastructure Pipeline, the demand for steel has seen a significant and sustained uptick.
The steel sector, long seen as a core industry with direct links to economic activity, is witnessing a revival, driven largely by the government’s capital spending. The Union Budget for FY25 once again raised allocation for infrastructure, with ₹11.11 lakh crore earmarked for capital expenditure. This is more than double what it was five years ago. A large part of this money goes into sectors like roads, railways, housing, and urban development — all of which need large volumes of steel, from rebars and sheets to structural components.
Public sector undertakings (PSUs) like the National Highways Authority of India, Indian Railways, and various metro rail corporations have become bulk consumers of steel. Metro projects alone, running across more than 20 cities, require thousands of tonnes of steel for tracks, stations, tunnels, and viaducts. Similarly, the Indian Railways’ push for electrification and laying new tracks is another major source of steady demand. Rural and affordable housing under PMAY also contributes, albeit in smaller volumes per unit, but adds up significantly given the scale.
“In fact, recent data shows that India’s crude steel production has crossed 125 million tonnes annually, with expectations of touching 300 million tonnes by 2030. Domestic demand, driven by public sector activity, is expected to take care of a big chunk of this projected supply.”
This steady demand has given Indian steelmakers the confidence to invest in expanding capacity. Companies are adding new plants or upgrading old ones with more energy-efficient and productive technologies. This is crucial because India is also aiming to reduce its dependence on imported steel and become self-sufficient. In fact, recent data shows that India’s crude steel production has crossed 125 million tonnes annually, with expectations of touching 300 million tonnes by 2030. Domestic demand, driven by public sector activity, is expected to take care of a big chunk of this projected supply.
Another important shift is the rise of green steel production. As more public infrastructure tenders begin to factor in environmental norms, steelmakers are slowly moving towards cleaner technologies like electric arc furnaces and hydrogen-based production methods. Though still at a nascent stage, this transition is being encouraged through policy support, and large players are showing interest in aligning with these goals. The expectation is that future infrastructure projects — especially those with foreign funding or sustainability commitments — will increasingly require low-carbon materials.
“At the same time, this rise in demand is also helping smaller players in the steel value chain. Rolling mills, processors, and logistics providers are witnessing higher volumes as the supply chain stretches to meet deadlines for big-ticket infrastructure works.”
At the same time, this rise in demand is also helping smaller players in the steel value chain. Rolling mills, processors, and logistics providers are witnessing higher volumes as the supply chain stretches to meet deadlines for big-ticket infrastructure works. Many of these are in semi-urban and rural areas, helping boost employment and local economies. The multiplier effect is becoming more visible, especially in states that are pushing their own infrastructure goals alongside central schemes.
However, challenges remain. Steel prices are volatile due to global factors like raw material costs and geopolitical disruptions. Also, the push for green production comes with higher initial costs, which not all players are ready to bear. Logistics bottlenecks and delays in public project execution can also hurt demand stability. Yet, the overall direction is clear — the Indian steel sector is closely tied to the country’s development story.
In a way, steel is not just building bridges and stations — it is becoming a symbol of India’s economic ambition. With the government’s commitment to long-term infrastructure spending and the industry’s readiness to respond with scale and innovation, the future of “Made in India” steel looks strong and well-supported. As public projects grow in number and complexity, they will continue to shape the demand curve and ensure that steel remains a backbone of India’s growth journey.
The author is Vedant Goel, Director, Enlight Metals
