Finance Minister Nirmala Sitharaman urged steel producers to cut emissions, expand domestic specialty steel production and reduce import dependence. Speaking at the World Steel Association General Assembly, she highlighted the Rs 6,300-crore PLI scheme, rising domestic demand and the need for cleaner technologies and stronger global cooperation on excess capacity.
Finance Minister Nirmala Sitharaman on Monday urged domestic steel producers to focus on decarbonisation and boosting domestic production of specialty steel to reduce dependence on imports.
Addressing the World Steel Association General Assembly here, the Finance Minister mentioned that the government has introduced the PLI scheme for specialty steel, with an approved outlay of Rs 6,300 crore.
The scheme encourages investment in domestic manufacturing and technology upgradation, helping India produce more of the specialised steel that its economy needs.
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“While much of the global industry is grappling with excess capacity and weak demand, India is experiencing a different trajectory, driven by domestic consumption and sustained investment,” she said.
“For two successive years, consumption has exceeded production, underscoring the strength of the domestic market, and the potential for further growth remains substantial,” the Finance Minister said.
Domestic Steel Demand Has Room to Grow
At approximately 109 kg per person, against the world average of 209 kg, India’s steel consumption has considerable room to rise, she said.
Demand for steel is driven by the government’s sustained public capital investment programme. Union government capital expenditure has risen sixfold, from approximately Rs 2 lakh crore in 2014-15 to Rs 12.2 lakh crore in FY27.
With construction and infrastructure accounting for about two-thirds of India’s steel use, this investment directly translates into demand for the metal, she said, adding that public investment gives the industry a sustained domestic market and the confidence to invest in capacity and modernisation.
Five Priorities for the Steel Industry
She outlined five priorities for the steel industry, including reducing production’s energy and carbon intensity while expanding capacity to meet India’s development needs.
Sitharaman said greater domestic production of specialty and high-grade steel would support strategic industries and reduce dependence on specialised imports.
She also stressed the need to pursue decarbonisation at a pace consistent with India’s development priorities, requiring credible emissions measurement, technology development and a fair sharing of transition costs.
Call for Multilateral Action on Steel Trade
On global trade, the Finance Minister said successive unilateral tariffs merely redirect surplus steel from one market to another.
A lasting solution to global excess capacity requires multilateral disciplines on subsidies that sustain uneconomic production, backed by transparent data, she said.
For India, Sitharaman said, the task is to build capacity for its own development at lower carbon intensity and regain the leadership in specialty metallurgy that the country possessed in ancient times.
She emphasised that, for World Steel Association members, India offers the fastest-growing major steel market, with a public investment programme and a green steel framework already in place.
