Steel: Strategic backbone of India's industrial growth, eco transformation

The steel industry contributes directly over 2% of India's GDP

At the turn of the 20th century, nations that industrialised rapidly and built strong steel industries gained a significant competitive edge. Steel was not only a product of the primary sector — rooted in mining and raw material processing — but also a vital input for the manufacturing sector, forming the foundation for industrial economies. Its dual role made it indispensable for any country on the path to sustainable development.

 

Following its Independence, India adopted the model of a mixed economy, aiming to build resilience across primary, secondary, and tertiary sectors simultaneously. Steel emerged as a powerful enabler in this framework — connecting mining and raw material processing with high-end manufacturing and service sectors.

 

A critical contributor

 

Today, the Indian steel industry contributes directly to over 2 per cent of the country’s GDP (gross domestic product), with its indirect impact being significantly larger due to its deep integration with allied industries. The sector is also a major source of employment, providing direct jobs to nearly half a million people and supporting over 2 million more through indirect roles in mining, transportation, logistics, and services.

 

The employment multiplier of the steel sector stands at an impressive 6.8x — meaning every direct job created in steel leads to nearly seven additional jobs across the economy. Its output multiplier is equally significant: for every unit of output generated, the broader economy gains approximately 1.4 times more.

 

As per the World Steel Association, for every two jobs created directly in the steel industry globally, 13 additional jobs are created across the supply chain, underscoring the industry’s powerful role as a job multiplier and growth accelerator.

 

Engine of Atmanirbhar Bharat

 

Under the dynamic leadership of Prime Minister Narendra Modi, India’s steel sector is being transformed into a strategic engine of national growth. His bold policy frameworks such as Atmanirbhar Bharat, the National Infrastructure Pipeline, and the ambitious roadmap towards a Viksit Bharat by 2047 have placed steel at the heart of India’s development vision.

 

Furthermore, in alignment with India’s international climate commitments, the Prime Minister has declared the goal of achieving net zero carbon emissions by 2070. The steel industry is now being steered toward green steel manufacturing, carbon capture and utilisation, recycling, and hydrogen-based steel production, making it both a growth sector and a sustainability leader.

 

India a global powerhouse

 

India has already emerged as the world’s second-largest producer of crude steel, with production rising from 103.13 million tonnes (MT) in 2017-18 to 144.3 MT in 2024. National consumption of finished steel has grown impressively — from just 6.5 MT in 1968 to 98.71 MT in 2018, and further to 136.29 MT in 2023-24.

 

This steady growth has been fuelled by robust investments in modernising plants, adopting advanced technologies, and enhancing manufacturing efficiency — all of which have significantly improved product quality and global competitiveness.

 

Integration with core and emerging sectors

 

The steel industry draws demand from a wide spectrum of core sectors including infrastructure, construction, engineering, automotive, defence, consumer goods, and aerospace. This multi-sectoral interdependence makes it a strategic sector and an essential building block for economic resilience.

 

Its unmatched properties — high strength, durability, low weight, ductility, and cost-efficiency — make steel an ideal material for use across the modern industrial landscape. It supports both traditional manufacturing and future-ready applications like renewable energy, green mobility, and smart infrastructure.

 

Supported by policy, powered by demand

 

Government initiatives such as the National Steel Policy, Make in India, and the Production Linked Incentive Scheme for Specialty Steel have catalysed private investment and spurred innovation. They’ve also ensured the industry’s alignment with both domestic demand and international market opportunities.

 

India’s rapid urbanisation, aggressive infrastructure expansion, and sustained industrial growth have sharply increased domestic steel demand — creating a virtuous cycle of investment, job creation, innovation, and exports.

 

As India strengthens its domestic capabilities, it is also expanding its presence in global steel markets. Steel exports are now becoming an important pillar of economic diplomacy, industrial growth, and foreign exchange earnings.

 

Foundation for the future

 

The ongoing India Steel 2025 conference revolves around six strategic themes that address the full spectrum of the industry’s evolution:

 

• Green steel and circularity
• Technology landscape: steelmaking and digitalisation
• Trade and taxation
• Raw material security
• Financing capacity augmentation
• Augmenting domestic consumption

 

These themes reflect the sector’s readiness to innovate, decarbonise, and meet the needs of a rapidly transforming economy.

 

Building the steel of tomorrow 

India’s steel story is not just about output numbers. It’s about nation-building, self-reliance, and global leadership.

 

As we move confidently towards the goals of Viksit Bharat by 2047 and net zero by 2070, the steel industry will continue to play a pivotal role — strengthening the spine of our infrastructure, energising our industries, and empowering millions of livelihoods across the nation.

 

The writer is union minister of heavy industries and steel