India needs to invest $120 billion to expand steel production by 2030

India needs to invest $120 billion to reach its target steel production level of 300 million tons by 2030. This is the estimate of the country’s Ministry of Steel, according to The Economic Times.

Without these investments and amid rising demand, India could become a net steel importer by that time.

According to Sandeep Poundrick, Secretary of the Ministry of Steel, India’s per capita steel consumption is approaching 100 kg per person.

The official drew attention to the increase in steel imports to the country (+41% y/y in the first half of FY2024/2025, April-September). The inventory level of the country’s steel companies has also doubled from the usual 15-16 days to about 30 days.

He also expressed concern about dumping in international markets, which has lowered global steel prices, eGov Magazine reports. Poundrick also noted that 62% of India’s steel imports come from countries that have signed the Free Trade Agreement. According to him, even the basic import duty will not affect this share of supplies from abroad.

As GMK Center reported earlier, India has increased its imports of rolled steel products to a 7-year high of 5.7 million tons since the beginning of the 2024/2025 fiscal year (April-October 2024). The world’s second largest steel producer continues to maintain its status as a net importer of steel, which was established in FY2023/2024. China is the key supplier of rolled steel to the Indian market. Steel consumption during this period reached a 7-year high of 85.7 million tons.