Steel Demand Development in Manufacturing Sector: India's Growth Path to 2030

India’s steel demand is expected to reach 192 million tonnes by 2030, growing at a compound annual growth rate (CAGR) of 6%. Construction and infrastructure will account for over 60% of total demand. Per capita steel consumption will nearly double from 96 kg to 160 kg.

India’s steel industry is entering a critical growth phase as the economy accelerates towards Vision 2030. Steel consumption, a key indicator of industrial development and urbanization, is expected to witness a major transformation, driven by changes in industrial sectors and policy-led developments in major steel-using sectors.

By 2030, India’s total steel demand is expected to reach 192 million tonnes (mnt), growing at a CAGR of 6%. This growth is largely driven by two sectors: construction and infrastructure, which are expected to account for 60-63% of total steel demand. These sectors will remain the key drivers of India’s steel industry, supported by large public investments, rapid urbanization, and the government’s continued push to build world-class physical infrastructure.

According to the latest figures, India’s steel demand has reached 149 million tonnes in FY2025, up from 136 million tonnes in FY2024. The construction sector consumes 47 million tonnes (31%), while the infrastructure sector accounts for 42 million tonnes (28%). By FY2030, the construction sector’s share is forecast to increase to 64 million tonnes (33%), and the infrastructure sector to 55 million tonnes (29%), reflecting the huge resources available for housing, road, rail, metro and logistics projects.

The product mix of steel demand is also changing. Long steel products, essential for construction and infrastructure applications, are expected to see significant growth – from around 89 million tonnes in FY2025 to around 114 million tonnes in FY2030. Meanwhile, flat steel products, which are mainly used in the automotive, general engineering and capital goods industries, are forecast to increase from 63 million tonnes in FY2024 and around 74 million tonnes in FY2025 to around 78 million tonnes in FY2030.

The automotive and general engineering industries will together contribute around 23% of total steel demand by 2030. This includes demand from increased passenger and commercial vehicle production, the growth of electric vehicles, expansion of capital equipment production, and increased precision engineering applications.

India’s emergence as the world’s third largest economy by 2030 will be a key driver of steel demand. As incomes rise, infrastructure expands and industries modernise, per capita steel consumption is forecast to nearly double – from the current 88 kg to around 160 kg. This significant growth highlights the changing role of steel in supporting India’s economic ambitions.

Much of this demand growth is being supported by transformational government initiatives:

• Bharatmala and Sagarmala are upgrading the country’s road and port infrastructure.
• Dedicated freight corridors and rail expansion are creating steady demand for long and structural steel.
• The Pradhan Mantri Awas Yojana (PMAY) scheme is boosting mass housing construction.
• Urban infrastructure projects – airports, ports, metros and smart cities – are driving demand for both long steel and slabs.
• The renewable energy sector, with a target of 500 GW by 2030, is driving demand for specialty steel applications.
• PLI schemes in sectors such as automotive, electronics and solar power generation are supporting long-term industrial steel consumption.

South India: A Strategic Growth Hub for the Steel Industry

South India has emerged as a key driver of steel consumption and trade, supported by:

• Strong demand from infrastructure, automotive, engineering and renewable energy.
• Strong port infrastructure (Chennai, Krishnapatnam, Visakhapatnam) enables efficient import of raw materials such as scrap, coal and ore.
• Reliance on imported scrap supports green steel production using electric arc furnaces.
• Investing heavily in green mobility, electric vehicles and precision manufacturing.
• Business-friendly policies, skilled workforce and industrial corridors drive expansion.

Conclusion: Building India’s Steel Future – Driven by the South

As India moves towards the 2030 economic milestone, steel will continue to be the bedrock of growth – with South India playing a leading role. Its strategic location, industrial dynamism and unique infrastructure readiness position the region to lead the next phase of steel industry growth, innovation and sustainability.

Source: Mysteel