Shangliao Sun
Research expert covering India
Steel industry in India - statistics & facts
The steel sector, the backbone of any industrialized nation, plays a significant role in India’s economic growth. It accounts for roughly two percent of India’s GDP. The history of India’s modern steel industry dates back to the 19th century. The first Indian steel company, Tata Iron and Steel Company, was established in 1907, and later became Tata Steel. As of December 2023, India was the world’s second-largest crude steel producer, just after China. The growth rate of the sector has been constantly higher than the growth rate of the country’s GDP.
Leading steel production capacity
The country produces different types of iron and steel such as pig iron, sponge iron, crude steel, and finished steel, to name a few. India has been the leading producer of sponge iron since 2003. These products are produced in different stages and forms like non-alloy and alloy finished steel, stainless steel, plates, rolls, and bars. Iron and steel are produced by both the public and private sectors, with the private sector having the larger production share.Major players
There are many private steel companies in India, with JSW Steel and Tata Steel being the leading players in this sector. JSW Steel alone outproduces the entire public sector. Meanwhile, Tata Steel owns several steel plants in Europe and Southeast Asia. The production share of steel by the public sector has consistently stood below 20 percent and is declining. As of 2024, there were seven central enterprises under the Ministry of Steel. Steel Authority of India Limited, or commonly known as SAIL, is one of the largest steel producers in the public sector .The potential of India's steel industry
One of the reasons for the strong growth in the steel industry has been the domestic availability and accessibility of coal and iron ore, two crucial raw materials for steel production. Combined with cost-effective labor and low conversion costs for steel, India has become the second-largest producer of crude steel since 2019. With increasing coal production in India as well as the approval of pending coal projects and new coal mining laws, India has grown to be the second-largest coal producing country. As of 2023, India was also one of the top producers of iron ore, with around 5.5 million metric tons of iron ore reserve.
