Forging Ahead: Reshaping India's Steel Sector for Sustainability and Growth

The domestic steel sector in India faces challenges like international price disparity and raw material security, as highlighted in the Economic Survey 2025-26. Despite growth driven by domestic demand, India was a net steel importer due to low export margins. Initiatives focus on enhancing self-reliance in raw materials.

The Economic Survey 2025-26, presented by Union Finance Minister Nirmala Sitharaman, highlights the challenges faced by India's domestic steel sector. These include international price disparity and securing raw materials essential for maintaining its global position as the second-largest crude steel producer.

The sector's notable transformation over the last five years was largely propelled by robust domestic demand from the construction and manufacturing industries. However, lower international prices have made India a net importer of steel, impacting export margins and encouraging cheaper imports.

To address these issues, the government has launched initiatives like Mission Coking Coal to increase domestic production. The Production-Linked Incentive (PLI) Scheme for Specialty Steel is also fostering self-reliance by injecting significant investment into the sector and boosting production levels.