The Finance Minister calls for cleaner steel production, stronger domestic specialty steel manufacturing and reduced dependence on imports.
Finance Minister Nirmala Sitharaman on October 12 urged Indian steel producers to accelerate decarbonisation and expand domestic production of specialty steel to reduce dependence on imports. Addressing the World Steel Association General Assembly in New Delhi, she highlighted India’s growing steel demand and the need to modernise production.
Sitharaman said the government has introduced a production-linked incentive (PLI) scheme for specialty steel with an approved outlay of ₹6,300 crore. The scheme aims to encourage domestic manufacturing investment and technology upgrades, enabling India to produce more high-grade steel required by its economy.
She noted that India’s steel consumption has exceeded production for two consecutive years, reflecting strong domestic demand. Per-capita steel consumption stands at around 109 kg, compared with the global average of 209 kg, indicating scope for further growth.
Public investment in infrastructure is a major driver of steel demand. Sitharaman said Union government capital expenditure had increased sixfold, from approximately ₹2 lakh crore in 2014–15 to ₹12.2 lakh crore in FY27. Construction and infrastructure account for around two-thirds of India’s steel consumption.
The Finance Minister outlined priorities for the sector, including expanding capacity while lowering energy use and carbon intensity, increasing domestic production of specialty and high-grade steel, and developing credible emissions measurement and cleaner technologies. She also stressed that the costs of transitioning to lower-carbon production should be shared fairly and that decarbonisation should remain consistent with India’s development priorities.
On global trade, Sitharaman cautioned that unilateral tariffs can redirect surplus steel from one market to another rather than resolve excess capacity. She called for multilateral rules on subsidies that sustain uneconomic production, supported by transparent data.
Sitharaman also urged the World Steel Association to consider opening an office in India, citing the country’s growing importance as a source of global steel-demand growth. She said a local presence could strengthen engagement with India and other fast-growing markets across South Asia, Southeast Asia, West Asia and Africa.
