India’s steel industry must secure annual investments [1] between ₹150,000 to ₹200,000 crore over the next two decades to scale production capacity from 200 million tonnes to 500 million tonnes by 2047, according to Jayant Acharya, Joint MD & CEO of JSW Steel. He stressed that this unprecedented financial commitment is essential to support rising domestic demand and large-scale government infrastructure initiatives.
The investment surge will depend heavily on private capital, technological advancements, and downstream integration, alongside sustained government backing. Acharya noted that India’s push toward sustainable steel production is particularly critical, requiring substantial funding to transition to green steel. “Viability gap funding will be necessary to ensure the transition to green steel,” he said, urging policymakers to implement mandates akin to renewable energy obligations to incentivize adoption in public infrastructure projects.
Apart from financing constraints, Acharya highlighted India’s vulnerability to steel imports due to trade agreements with surplus-producing nations like China, Japan, Korea, and ASEAN members. These countries enjoy zero-duty access to India, creating competitive pressures for domestic producers. Over the past two years, India shifted from being a net steel exporter to a net importer amid booming domestic demand and weaker global markets.
“India is the fastest-growing steel demand country, making us vulnerable to surplus steel from other nations,” Acharya warned at the India Steel 2025 Expo. He pointed out that while Western markets such as the US and Europe impose tariff barriers, India remains more exposed to cheaper imports. Recently, the government imposed a provisional 12% safeguard duty on key steel categories, including hot-rolled coils and sheets, to counter destabilizing effects of low-priced imports.
Acharya also identified structural impediments hindering steel industry expansion, particularly land acquisition complexities and regulatory delays, including environmental approvals. Logistics pose another challenge, with India’s steel production heavily reliant on rail transport due to cost efficiencies over road freight. However, congestion in railway networks—especially in states like Odisha and Karnataka—remains a significant bottleneck.
India’s per capita steel consumption, currently around 98 kg, is expected to reach 160 kg by 2030. Prime Minister Narendra Modi, in an earlier message, underscored the role of infrastructure projects such as PM Gati Shakti, the $1.3 trillion National Infrastructure Pipeline, the Smart Cities Mission, and rural initiatives like PM Awas Yojana in driving domestic steel demand. The mandate to use ‘Made in India’ steel in government projects has further boosted local consumption.
Despite challenges, Acharya remains optimistic about India’s steel industry trajectory, provided necessary investments, regulatory support, and sustainability measures align with long-term goals.
Sources:
[1] Steel industry needs ₹2 lakh crore annually to hit 500 MT capacity https://www.fortuneindia.com/business-news/steel-industry-needs-2-lakh-crore-annually-to-hit-500-mt-capacity/122435