India’s steel consumption is witnessing robust growth, with infrastructure and construction sectors accounting for nearly 65% of the total domestic steel usage, according to industry experts.
Speaking on this trend, Mr. Sanjay Singh, Director – Strategy and External Relations at Jindal Steel & Power, revealed that 25–30% of this demand stems directly from government-led infrastructure projects, including roads, bridges, and urban development schemes. This surge underlines the government’s continued push to upgrade national infrastructure as a pillar of economic growth.
Adding to this, Ms. Swati Agrawal, CEO & President – Advisory at CARE Analytics, highlighted the booming real estate market and evolving automotive landscape as secondary yet significant contributors to steel demand. The transition to electric vehicles (EVs) and investments in EV charging infrastructure are emerging as new demand drivers for steel, especially in urban corridors.
Policy Moves to Shield Domestic Steelmakers
To curb the influx of cheap imports and support local production, the Central Government enforced a 12% safeguard duty on steel imports in April 2025. The measure is mainly aimed at Chinese imports, with minimum import prices now fixed between Rs. 58,398 (US$ 675) and Rs. 83,378 (US$ 964) per tonne for key steel categories.
Mr. Singh acknowledged the safeguard duty’s impact, saying it has “insulated Indian producers from low-cost steel flooding the market,” thereby strengthening the competitiveness of domestic manufacturers.
Key Highlights:
- 65% of India’s steel is consumed by infrastructure and construction sectors.
- 25–30% of demand is driven by government infrastructure projects.
- Real estate boom and EV transition are accelerating steel consumption.
- 12% safeguard duty imposed in April 2025 to curb cheap Chinese imports.
- New import price floor set to protect domestic steelmakers.
