Nirmala Sitharaman told the World Steel Association General Assembly in New Delhi that India’s steel sector must pivot aggressively toward specialty products and greener production methods. The move is designed to slash reliance on imported high-grade steel. She unveiled the details of the new PLI scheme, which has an approved outlay of Rs 6,300 crore to fund technology upgradation and domestic manufacturing.
The Finance Minister drew a sharp contrast between India’s market dynamics and the rest of the world. While global peers struggle with glutted supply and anemic demand, India is seeing consumption outpace production for the second consecutive year. "For two successive years, consumption has exceeded production, underscoring the strength of the domestic market," Sitharaman said. She argued that this trajectory is driven by solid domestic investment, not just export cycles.
The data paints a picture of significant headroom. India currently consumes approximately 109 kg of steel per person. The world average is 209 kg. That gap represents a massive untapped opportunity for Indian foundries and mills. Sitharaman stressed that the government’s role is to enable producers to capture this demand through financial support and policy clarity.
The PLI mechanism specifically targets the quality of steel, not just the quantity. It encourages firms to invest in advanced technologies that produce specialized alloys used in automotive, aerospace, and heavy machinery sectors. By boosting these high-value segments, India aims to retain more value within its domestic economy rather than importing finished goods. The next step lies with the steel majors to finalize their investment plans under the new incentive framework.