The Indian government will increase its focus on steel industry and raw material security

The Indian government will increase its focus on steel production and raw material security as part of its 2030 goals, according to The Economic Times.

The country aims to achieve a steel production capacity of 300 million tons by 2030. The main focus is on “green” steel, as well as special and high-quality grades for domestic and export markets.

Demand for metal products in India continues to be supported by infrastructure spending, the housing and defense sectors, and manufacturing under government initiatives. At the same time, local steelmakers face challenges such as rising imports despite national protective measures, unstable raw material prices, and uncertainty in global trade.

A steel ministry official said the government had taken a number of measures to protect Indian industry, including the imposition of safeguard and anti-dumping duties on imports of flat steel products from countries such as China and Vietnam.

The relevant ministry has also introduced a production-linked incentive (PLI) scheme, which offers fiscal incentives for the production of high-quality and special steel used in defense, power generation, particularly renewable energy, automotive, and aviation sectors.

The government is also focusing on strengthening the availability of raw materials. According to a ministry representative, the authorities are exploring new coking coal reserves and cooperating with other countries to diversify supplies.

As for iron ore, auctions are ongoing, and steel producers are encouraged to participate. The ministry is also promoting the enrichment of low-grade raw materials.

At the same time, the industry organization Assocham (Associated Chambers of Commerce and Industry of India) noted that despite government support, the metallurgical sector is burdened by problems such as rising coking coal costs, high logistics costs, and infrastructure bottlenecks. Among other things, they also point to the growth of trade barriers around the world. Some relief may come if free trade agreements are concluded with the EU and the US.

It should be noted that India will increase its iron ore imports to a multi-year-high in 2025. Limited domestic supply is leading to a significant increase in imports.