India steel secy: Indian growth enough for steel producers to ramp up capacity

India steel secy: Indian growth enough for steel producers to ramp up capacity

India's steel sector is experiencing robust growth, driven by significant domestic demand and government initiatives. This growth is prompting steel producers to ramp up their capacity to meet the increasing demand and support the country's industrial and infrastructure development. According to a recent report by EY Parthenon in association with the Indian Steel Association (ISA), India's coking coal imports are projected to rise, underscoring the sector's ambitious targets .

The report highlights that India aims to increase its steel production capacity to 300 million metric tons (MT) by 2030. This ambitious goal is supported by a rising demand from infrastructure, construction, and automotive sectors, which are expected to fuel coking coal requirements. The domestic production of coking coal is also targeted to more than double from 66.8 MT in FY24 to 140 MT by FY30, with the government's Mission Coking Coal seeking to scale domestic raw output to 140 MT by FY30 .

Australia remains the dominant source of India's coking coal, with other significant suppliers including the USA, Canada, and Russia. However, to reduce reliance on this concentrated group of suppliers, India is exploring new sources such as Mongolia and Mozambique. The report also emphasizes the need for a balanced approach that strengthens domestic production, diversifies imports, and advances decarbonization technologies to meet India's ambitious steel production targets while aligning with its 2070 net-zero goal .

The steel sector's growth is not just limited to production capacity but also extends to the adoption of innovative construction methods. The prefabricated steel structures market, for instance, is experiencing significant growth, driven by increasing demand for efficient construction methods and sustainable building solutions. The Global Prefabricated Steel Structures Market size is estimated to be valued at USD 12.3 billion in 2025 and is expected to reach USD 21.5 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 8.5% from 2025 to 2032 .

The growing trend towards sustainable construction practices is generating demand for prefabricated steel structures, which offer reduced construction time and lower material waste. Innovations in material technology, such as high-strength steel and corrosion-resistant coatings, are further enhancing the durability and performance of these structures .

In conclusion, the robust growth of India's steel sector, driven by domestic demand and government initiatives, is providing the impetus for steel producers to ramp up their capacity. The sector's focus on innovation and sustainability, coupled with a balanced approach to coking coal imports and domestic production, positions it well to meet its ambitious targets while contributing to the country's industrial and infrastructure development.