India’s Steel Industry Unites: 4 Bold Moves to Dominate Global Markets in 2025
India is uniting its public and private steelmakers under a strategic framework to enhance their global competitiveness in securing raw materials, technology, and export deals. Led by the Ministry of Steel, this initiative aims to strengthen bargaining power through collective negotiations. The plan focuses on four key areas—raw material procurement, investments, technology, and exports. To diversify supply, India is forming partnerships with Australia, Russia, and South Africa for coking coal and Mozambique for manganese.
It is also seeking technology collaborations with Germany, Italy, and Japan to modernize steel production. The Middle East and UAE are being targeted to expand steel exports. Additionally, a new phase of the PLI scheme will boost specialty steel manufacturing with minimal investment and quick turnaround. This coordinated effort is set to position India as a major player in the global steel industry.
India’s Steel Industry Unites: 4 Bold Moves to Dominate Global Markets in 2025
India is taking bold steps to unite its public and private steel companies under a single platform, aiming to strengthen their global bargaining power in securing raw materials, advanced technologies, and export opportunities. Spearheaded by the Ministry of Steel, this collaborative effort seeks to reduce reliance on imports, foster innovation, and position the country as a major player in the international steel market.
A Unified Strategy for Global Negotiations
The plan revolves around four pillars: securing raw materials, attracting investments, adopting advanced technologies, and expanding exports. By negotiating as a collective group rather than as individual entities, Indian steel manufacturers can secure better pricing and terms for critical resources like coking coal—a key ingredient in steelmaking. Currently, India imports nearly 85% of its coking coal, primarily from Australia. To reduce this dependency, the government is actively exploring partnerships with Russia, South Africa, and Australia to diversify supply sources. Similarly, discussions are underway with Mozambique to secure manganese, another essential raw material, as India currently imports over half of its manganese requirements.
Technology Partnerships to Boost Efficiency
Recognizing the need for innovation, India is pursuing collaborations with global leaders in steel technology, including Germany, Italy, and Japan. These partnerships aim to bring cutting-edge advancements to Indian factories, such as energy-efficient production methods and automation systems. By adopting greener and smarter technologies, the industry can reduce costs, improve product quality, and meet global sustainability standards—a growing demand in international markets.
Expanding Exports to New Markets
To grow its share in the global steel trade, India is targeting emerging markets in the Middle East and the UAE, where rapid infrastructure development is driving demand for steel. The government is also streamlining export processes and addressing trade barriers to make Indian steel more competitive. Initiatives like quality certification programs and branding campaigns are being planned to build trust in international markets.
Production-Linked Incentives to Encourage Specialty Steel
A new phase of the Production-Linked Incentive (PLI) scheme is in the works to boost domestic manufacturing of high-value specialty steel. Unlike earlier versions, this phase will prioritize projects requiring lower upfront investments and shorter implementation timelines (under two years). The focus remains on niche steel categories like coated products (used in automobiles and appliances), high-strength steel (for construction and defense), and specialty rails (for railways). By supporting smaller and mid-sized manufacturers, the scheme aims to create a robust ecosystem for specialty steel, reducing import dependence and catering to both domestic and global demand.
Why Collaboration Matters
The fragmented nature of India’s steel sector has often led to challenges in competing with global giants. For instance, individual companies negotiating separate deals for coking coal or technology transfers face higher costs and limited bargaining power. By pooling resources and strategies, the industry can secure bulk discounts, share infrastructure, and jointly invest in research. The government’s role as a facilitator—through policy reforms, funding, and diplomatic efforts—will be critical in building trust between public and private players.
Challenges and the Road Ahead
While the plan is ambitious, challenges like fluctuating global commodity prices, geopolitical tensions, and environmental regulations could impact progress. For example, sourcing coking coal from Russia may face logistical hurdles due to ongoing geopolitical conflicts. Similarly, adopting advanced technologies requires significant workforce training and upfront costs. However, the government’s proactive approach—combining policy support with industry collaboration—signals a strong commitment to transforming India into a self-reliant steel hub.
In the long run, this unified strategy could help India reduce import bills, create jobs, and elevate its status from a bulk steel producer to a leader in high-quality, value-added products. With the right execution, this initiative has the potential to reshape the global steel landscape, making “Made in India” steel a symbol of innovation and reliability.