Investments in infrastructure will support additional demand for steel in India, – minister

India plans to invest $125-130 billion annually in infrastructure through various government initiatives, which will support additional demand for steel. This was announced by the country’s Minister of Commerce and Industry Piyush Goyal during the Indian Steel Association (ISA) conclave, Kallanish reports.

The official noted that India should strive to achieve steel consumption of 500 kg per capita, creating new demand. In his opinion, the country’s metallurgists now need to reach the global average (220 kg) as quickly as possible. Goyal called on the industry to focus on the levels achieved by China, the EU, and the United States. Current per capita steel consumption in the country is 104 kg.

The minister also recalled that negotiations on a free trade agreement (FTA) with the EU are nearing completion. According to him, the European Carbon Border Adjustment Mechanism (CBAM) is very high on the agenda and will be a key factor in the discussions.

Goyal said that the government is actively negotiating with several parties on the FTA, India Shipping News reports, and many of them will open new avenues for Indian steelmakers in international markets. He noted that the government has ensured the inclusion of “smelting and rolling” conditions wherever there is potential for steel imports. This approach will protect local producers from cheap steel products supplied through third countries.

The minister called on the sector to study its import-export profile, identify areas where import substitution is possible, and cooperate with domestic supply chains to reduce dependence on foreign sources.

It should be recalled that India reached its target steel production capacity of 205 million tons per year in the 2024/2025 financial year. According to a report by MP Financial Advisory Services, the country is confidently moving towards its strategic goal of 300 million tons per year by the 2030/2031 financial year.