India's Steel Industry: Navigating Import Pressures and Growth Strategies

The Economic Survey 2024-25 reveals India's status as a net importer of steel due to price pressures. The sector faces challenges from international market disparities, but demand grows through infrastructure strategies, with private sector investments thriving despite global excess capacities impacting trade dynamics.

India continues to import more steel than it exports, according to the latest Economic Survey 2024-25, despite enduring price pressures from international markets.

The fiscal year's pre-Budget document highlights that from April to November, lower global prices affected India's export margins, prompting increased imports. Meanwhile, domestic manufacturing capacity utilization exceeds historical averages, with private sector orders steadily increasing and investment intentions on the rise.

However, the survey warns that global overcapacity, especially in steel, might lead to heightened competition and aggressive trade policies. Despite these challenges, India's steel demand is robust, chiefly propelled by infrastructure development and growth in core industries like construction.

(With inputs from agencies.)