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Make in India

Investment Facilitation & Make in India


  • India is currently the world’s 2nd largest producer of crude steel in January - December 2021, producing 118.20 Million tonnes (MT) crude steel with growth rate 17.9% over the corresponding period last year (CPLY).
  • India is the largest producer of Direct Reduced Iron (DRI) or Sponge Iron in the world in January – December 2021, producing 39.04 MT Sponge Iron with growth rate 16.2% over the corresponding period last year (CPLY).
  • India is the 2nd largest consumer of finished steel in 2021 (106.23 MT), preceded by China as the largest steel consumer as per World Steel Association.
  • Capacity for domestic crude steel expanded from 137.97 MT in 2017-18 to 154.06 MT in 2021-22, Compounded Annual Growth Rate (CAGR) of 3.7% during this five-year period.
  • Crude steel production grew at 4.2% annually (CAGR) from 103.13 MT in 2017-18 to 120.29 MT in 2021-22.
  • During April – July, 2021-22 (provisional; source: JPC), the following is the industry scenario as compared to same period of last year:
    • Production of crude steel was at 41.09 MT, up by 8.9%. SAIL, RINL, TSL Group, AM/NS, JSWL & JSPL together produced 24.75 MT (60% share) during this period, up by 4.5%. The rest (16.34 MT) came from the Other Producers, up by 16.2%.
    • With 83% share, the Private Sector (34.10 MT, up by 11.3%) led crude steel production compared to the 17% contribution of the PSUs (down by 1.8%).
    • Pig iron production was 1.97 MT, down by 6.6%. The Private Sector accounted for 89% of the same, the rest 11% being the share of the Public Sector.
    • In case of total finished steel (non-alloy + alloy/stainless):
      • Production stood at 38.54 MT, a growth of 9.3%.
      • Exports stood at 2.57 MT, down by 49.3%.
      • Imports stood at 1.62 MT, up by 3.1%.
      • India was a net exporter of total finished.
      • Consumption stood at 36.51 MT, a growth of 10.6%.

Setting up of Project Development Cell (PDC) for Attracting Investment in India

Ministry of Steel has set up a Project Development Cell to facilitate and attract investment in the steel sector. PDC will act as a single point of contact for prospective investors. PDC will also focus on reaching out to prospective investors and facilitate the investors during the various stages of investment process. Smt Ruchika Chaudhry Govil, Additional Secretary in the Ministry of Steel is the Nodal Officer of PDC. Her official telephone number is : 011-23063297


The following are some of the major factors which will boost the demand of steel in India and reasons to invest in Indian steel sector:

  • The Union Cabinet has given its approval for National Steel Policy (NSP) 2017 on 08.05.2017. The new Steel Policy enshrines the long term vision of the Government to give impetus to the steel sector. It seeks to enhance domestic steel consumption and ensure high quality steel production and create a technologically advanced and globally competitive steel industry. The policy projects crude steel capacity of 300 million tonnes (MT), production of 255 MT and seeks to increase per capita steel consumption to the level of 160 Kgs by 2030 from existing level of around 60 Kg and major segments of consumptions are infrastructure, automobiles and housing sectors. The policy also envisages to domestically meet the entire demand of high grade automotive steel, electrical steel, special steels and alloys for strategic applications and increase domestic availability of washed coking coal so as to reduce import dependence on coking coal from about 85% to around 65% by 2030-31.
  • A Mega Conclave held on ‘Capital Goods for Steel Sector: Manufacture in India’ in Bhubaneswar on Oct 23rd, 2018 involving relevant Central Ministries and State Govts, Global technology providers & World Steel Association, Indian Capital goods manufacturers and major Indian Steel Companies, R&D institution/ IIT, with MECON as the knowledge partner to promote domestic manufacturing of capital goods for steel sector in India in the wake of opportunities emanating from NSP-2017. Several MoUs were signed for technology collaboration in various areas of Iron & Steel industry and also for manufacture of capital goods for the steel sector in India
  • The Union Cabinet has approved the policy for providing preference to domestically manufactured iron & steel products on Government procurement in 2017. The policy has been revised on 29th May 2019 and subsequently revised on 31.12.2020. This policy provides preference to Domestically produced Iron & Steel in Government procurement where procurement value of iron and steel products exceeds Rs 5 lakh. The minimum domestic value addition of 20% to 50% has been made mandatory for notified iron and steel products which are covered under preferential procurement. The policy is also applicable to purchase of iron & steel products by private agencies for fulfilling an EPC contract and capital goods required for manufacturing iron & steel products. This policy is expected to give impetus to indigenous manufacturing through widening of manufacturing base, sharing of know-how, product development as well as technological transfer by way of multi-lateral collaboration. This will also encourage foreign technology providers and critical steel plant manufacturers to set up manufacturing facilities in India.

ChintanShivir: Towards a Vibrant, Efficient and Globally Competitive Indian Steel Sector

The Chintan Shivir event held on 23rd Sept. 2019 at New Delhi &was conceptualized with a clear theme in line with the vision and objectives “Towards a Vibrant, Efficient and Globally Competitive Indian Steel Sector” and involved participation from over 900 participants across Government (Centre, State), CPSEs, private sector, research institutes, consulting and banking sectors. The brief is as under:

  • Domestic Capacity Expansion with Special Reference to Secondary Steel Sector: The secondary steel sector in India currently contributes over 40% of the total capacity and it will need to play a crucial role for India to reach 300 MT capacity. This discussion thus aimed to identify challenges to capacity expansion in the country with a special focus on secondary steel and to correspondingly discuss on suggestions on alleviating these
  • Demand Generation: Despite being the 3rd largest steel consumer in the world, India has per capita steel consumption that is only one third of the world’s average. This session therefore aimed to discuss, deliberate and identify suggestions to increase the per capita consumption of steel in the country.
  • High Grade Steel Production: Despite being a small share of imports by quantity, alloy and stainless steel contribute disproportionately to the import bill by value. Hence, this session delved into intriguing challenges for the special steel sector and outlined potential suggestions to enable India to emerge as a key player in high grade steel