Graphic: India’s Crude Steel Production Over Time

Steel production in India has grown fivefold since 2000, making the country the second-largest crude steel producer in the world as of 2024. 

So how did India get here over the past two decades? And what are the key steel plants contributing to this growth? 

In this post, Metalshub dives into the answers using data from the World Steel Association and Global Energy Monitor.  

Since 2000, India’s steel industry has expanded remarkably, experiencing a more than 400% surge in crude steel production. During that time, the country achieved several milestones, including becoming the third-largest steel producer in the world in 2015, and the second-largest in 2018. 

This production growth has been driven by a simultaneous expansion in capacity and improvements in efficiency, thanks to government policies and continued sector investments. 

Since 2000, nearly 3 dozen new Indian steel plants have gone into production, with the five largest being the following. 

Initiatives such as the National Steel Policy, which set ambitious capacity targets, and the Production-Linked Incentive Scheme, designed to encourage domestic manufacturing and reduce import reliance, have bolstered the country’s achievements. 

Initiatives in other sectors, like the Pradhan Mantri Awas Yojana’s mission to achieve “Housing for All,” have also indirectly fueled industry growth by driving demand.

In hindsight, India’s steel industry has also remained resilient in the face of challenges during the last two decades. After a pandemic-related dip in 2020, for instance, 2021 steel production bounced back 6% higher than 2019 levels, with five new plants going live in that year. 

Looking ahead, the future of India’s steel industry appears promising. Beyond the favourable policy environment, the country has access to abundant natural resources, state-of-the-art integrated steel facilities, and cost-competitive production. 

Projections by the India Brand Equity Foundation show that India’s annual crude steel production capacity could reach 300 million tonnes by 2031. This is a 113% increase over 2023 levels of production.

Beyond its borders, India is also poised to position itself at the forefront of the global steel industry. 

According to a recent report from Global Energy Monitor, India surpassed China for the first time as the top developer of coal-based steel capacity in July 2023. This shift indicates India’s aggressive expansion strategy, with 218 million tons of annual coal-based steel capacity currently in development—far exceeding China’s 84 million.

Overall, India’s steel industry shows steady, long-term growth trends, positioning the country as a central player in global steel production.

Metalshub is an industry-leading software platform for managing the procurement and sales of raw materials. 

We are here to transform the procurement processes for Indian steel mills, enhancing both efficiency and competitiveness. Here’s how:

1. Supply Security: Metalshub’s platform connects steel producers with a global network of verified suppliers, ensuring reliable access to essential raw materials like scrap, coking coal, and ferroalloys. 
2. Cost Savings: Metalshub’s Procurement Solution helps companies discover new suppliers, increase competition across existing suppliers, reduce the administrative burden, and centralise volume across buying entities. 
3. Embedded Compliance: Procurement teams using Metalshub can institute the right checks and balances, such as approval workflows and user management, to ensure compliant practices and audit-readiness. 
4. Process Efficiencies: Metalshub automates and digitises procurement steps from source to contract to save time and reduce errors. 
5. Structured Data = Better Decisions: Indian steel mills can analyse procurement trends, monitor supplier performance, and make data-driven choices that optimise raw material strategies. 

Supplier discovery should, ideally, not be a one-off effort. The dynamic nature of the metals, mining and recycling industry requires to always have an eye on the supplier base.

A diverse and dynamic supplier base enables companies to reduce risk and build up redundancies in case of supply chain disruptions. With Metalshub, companies can rapidly source alternative suppliers when faced with price fluctuations, operational difficulties, shortages, or any other disruption.

“In these times of unprecedented disruptions in the raw material industry, it is important to broaden our supplier base apart from having an efficient tool to manage our procurement, we could find new suppliers on Metalshub, which drives our supply chain resilience.” Zoe Williams, Senior Buyer William Cook

Continuous supplier discovery also fosters healthy competition, not just among new suppliers but also among existing ones. When suppliers know that businesses are constantly looking for alternatives, they are incentivised to offer better pricing, improved quality, and more flexible terms to retain their position. This competition is one of the reasons why Metalshub users see an average saving of 2.3% on annual direct raw material costs.

By regularly publishing public enquiries on Metalshub, businesses can attract a larger pool of suppliers and create a competitive process. Suppliers will need to offer their best prices and terms to stay competitive, giving buyers a stronger negotiating position. The knowledge for existing suppliers that new competitors are constantly emerging helps maintain a competitive edge in procurement.

“Along with operational efficiency, we found new suppliers on the network of Metalshub, which contributed to our competitiveness in the global steel market.” Julian Strüve, Strategic Buyer Raw Materials BENTELER Steel/Tube

While discovering new suppliers is crucial, continuous supplier discovery doesn’t mean replacing trusted suppliers. Instead, it enhances long-term relationships by ensuring that existing suppliers remain competitive. Metalshub’s platform allows businesses to monitor market trends and pricing, ensuring that current suppliers are offering fair and competitive terms. This transparency strengthens partnerships by making sure both sides are aligned in terms of pricing, quality, and delivery expectations.

The platform’s review and rating system also helps businesses make data-driven decisions. It ensures that they work with reliable suppliers while maintaining healthy competition. This transparency benefits both sides, as suppliers are motivated to maintain high standards, while buyers have a clear view of supplier performance.

Metalshub simplifies the entire supplier discovery process, eliminating much of the manual effort traditionally involved in finding new suppliers. Consequently, users often find that Metalshub helps them stay ahead of the curve, adjusting to shifts in the market and discovering new opportunities for cost reduction.

In an industry as dynamic as metals and mining, where raw materials form the backbone of operations, continuous supplier discovery is not just a strategic advantage – it’s essential for staying competitive.