Indian Iron & Steel Industry

Context

India’s steel sector — a key driver of industrial growth and modernization — has recorded significant expansion, emerging as the 2nd largest crude steel producer and largest sponge iron producer globally (2022–23).

Key Facts & Figures

1️⃣ Production Highlights (2022–23)

Crude Steel: 127.19 million tonnes (↑5.7% over 2021–22)
→ Capacity: 161.23 MT | Utilisation: 78.85%
Finished Steel:123.19 MT (Crude Steel Equivalent)
- Non-alloy: 113.52 MT
- Alloy: 6.87 MT
- Stainless: 2.77 MT
Hot Metal: 81.16 MT (↑3.8%)
Pig Iron: 5.81 MT
Sponge Iron: 43.62 MT (↑11.3%) → India = World’s Largest Producer

2️⃣ Structural Overview

Private Sector: 82% share in crude steel output (104.76 MT)
Public Sector: Major producers – SAIL, RINL
Top Private Producers: Tata Steel, JSW, JSPL, AM/NS, Essar

3️⃣ Major Production Routes

Route	Units	Capacity (MT)	Production (MT)	Utilisation
BF/BOF (Oxygen Route)	18	67.29	58.79	87%
EAF (Mini Steel Plants)	34	36.60	28.20	77%
IF (Induction Furnace)	887	57.39	40.20	70%

🧩 Induction route fastest growing → low-cost production, regional market supply.

4️⃣ Exports & Imports (2022–23)

Exports: 6.71 MT (↓25% in value → ₹1.53 lakh crore)
→ Main Destinations: USA (18%), Italy (9%), UAE (6%), Nepal (5%)
Imports: 6.02 MT (↑46% in value → ₹1.70 lakh crore)
→ Main Sources: China (17%), S. Korea (14%), Japan (8%), Indonesia (7%)

5️⃣ Policy Framework

🔹 National Steel Policy (NSP), 2005:
Aim – Modern, self-reliant, globally competitive industry.
🔹 National Steel Policy, 2017:
Vision 2030 – 300 MT production capacity; promote ‘Make in India’, domestic procurement, and technological upgradation.
🔹 Steel Scrap Recycling Policy:
→ Ensure quality scrap, reduce imports, save energy & resources.
→ Recycling 1 tonne scrap saves 1.1 t iron ore, 0.7 t coal, and ~17% energy.

6️⃣ Ship Breaking & Scrap Industry

Main Hub: Alang–Sosiya (Gujarat) – 98% of India’s ship recycling.
→ Capacity: ~450 ships/year → >4.5 MT re-rollable steel.
Contribution: 1–2% of domestic steel demand.
Regulators/Players: MSTC Ltd, Ferro Scrap Nigam Ltd (FSNL).
→ Engage in e-auctions, recycling, and scrap recovery from steel plants.

7️⃣ Global Scenario (2022)

World Pig Iron: 1,414 MT (↓2%) → China 61%, India 8%
World Crude Steel: 1,874 MT (↓4%)
→ China 54%, India 7%, Japan & USA 4% each

8️⃣ Future Outlook

Drivers: Urbanization, infra push, manufacturing growth, “Make in India”.
India:
- 2nd largest crude steel producer
- 3rd largest finished steel consumer
- 1st in sponge iron/DRI production
Construction sector: ~50% of global steel demand.
Goal: Environmentally sustainable & globally competitive growth.

Source : Government of India, Ministry of Mines, Indian Minerals Yearbook 2023
Indian Bureau of Mines, Nagpur, January 2025.
Issued by the Controller General, Indian Bureau of Mines.

Updated - 27 Sept 2025 ; 12: 23 PM