India Emerges as 2nd Largest Producer of Crude Steel, Overtaking Japan

India has made remarkable strides in the steel industry, becoming the second-largest producer of crude steel globally after China in both 2018 and 2019. This achievement has positioned India ahead of Japan, according to data released by the World Steel Association. The steady growth of the Indian steel sector can be attributed to various factors, including the availability of raw materials, abundant labor, and a thriving construction and manufacturing market. The government’s supportive policies, such as the National Steel Policy and preference for domestically manufactured iron and steel, have played a significant role in boosting the domestic production and consumption of steel. Additionally, the liberalization of the coal mining sector and foreign investments have further bolstered the growth potential of the Indian steel industry.

India’s Impressive Steel Production

India’s Ministry of Steel reported that the nation’s crude steel production reached 109.3 million tonnes in 2018, showcasing a substantial increase of 7.7 percent compared to the previous year. The growth trend continued in 2019, with India’s crude steel production rising to 111.2 million tonnes. This upward trajectory in steel production has not only propelled India’s economic growth but also solidified its position as a major force in the global steel market.

Government Initiatives to Support the Steel Industry

Recognizing the importance of the steel industry, the Government of India has implemented various measures to support its growth. The National Steel Policy, 2017, and the Policy for Providing Preference to Domestically Manufactured Iron and Steel in state procurement have created a favorable environment for enhancing domestic production and consumption. Furthermore, the government has introduced quality control orders to restrict the manufacturing and import of substandard steel, ensuring higher quality standards. Moreover, the liberalization of the coal mining sector has opened up new opportunities for the steel industry, leading to increased efficiency and reduced costs.

Foreign Investments and Future Projections

India’s robust steel demand, which is expected to grow by 7.2 percent in 2019-20 and remain consistent in 2020-21, has attracted foreign entities to invest in the country’s steel sector. The government’s focus on inviting foreign investments aligns with its vision of India becoming a $5 trillion economy. To further enhance the steel industry’s growth, the government has launched the Purvodaya program, aimed at accelerating the development of eastern India by establishing an integrated steel hub. The eastern states of Odisha, Jharkhand, Chhattisgarh, West Bengal, and the northern part of Andhra Pradesh possess abundant reserves of iron ore, coking coal, chromite, bauxite, and dolomite. Leveraging these resources and existing infrastructure, such as major ports, the Purvodaya program seeks to transform the region into a significant global exporting and industrial hub, contributing to India’s economic expansion.

Potential of the Eastern Belt

The government envisions the eastern belt as the key driver of India’s incremental steel capacity, projected to contribute more than 75 percent of the country’s growth by 2030-31, as outlined in the National Steel Policy. This region has the potential to add over 200 million tonnes of steel production capacity out of the targeted 300 million tonnes by 2030-31. Industry 4.0, with its focus on technological advancements and automation, will play a vital role in enabling swift capacity addition, generating substantial employment opportunities, and improving the overall competitiveness of steel producers in terms of cost and quality.


India’s emergence as the second-largest producer of crude steel globally is a testament to the country’s rapid economic growth and the development of its steel industry. Supported by favorable policies, increased availability of raw materials, and technological advancements, India has successfully expanded its steel production capacity and surpassed Japan in the global rankings. The government’s proactive approach in promoting domestic manufacturing, quality control, and liberalizing key sectors like coal mining has further propelled the growth of the steel industry.

Looking ahead, India’s steel sector is expected to witness continued growth, with a projected demand increase of 7.2 percent in the coming years. Foreign investments are likely to play a crucial role in meeting this demand and driving innovation in the industry. Moreover, the Purvodaya program’s focus on the development of an integrated steel hub in the eastern region holds immense potential, given its abundant reserves of key raw materials and strategic geographical advantages.

With the government’s vision of India becoming a $5 trillion economy, the steel industry’s growth becomes pivotal in achieving this ambitious goal. By capitalizing on its strengths and leveraging technological advancements, India’s steel sector can not only contribute significantly to economic growth but also position itself as a major global player.

In conclusion, India’s rise as the second-largest producer of crude steel underscores its growing stature in the global steel market. Through favorable policies, foreign investments, and strategic initiatives, the country is poised to further strengthen its position and drive the steel industry’s growth in the years to come. With a focus on sustainability, quality, and innovation, India’s steel sector is set to play a crucial role in shaping the nation’s economic landscape.

2nd Largest Producer of Crude Steel – FAQs

Q1: Which country has emerged as the second-largest producer of crude steel after China?

Ans: After China, India is now the second-largest producer of crude steel.

Q2: How has the Indian government supported the domestic steel industry?

Ans: In order to boost the domestic steel industry, the Indian government has introduced the National Steel Policy, 2017, and the Policy for Providing Preference to Domestically Manufactured Iron and Steel (DMI & SP) in State Procurement. These regulations have improved the conditions for domestic steel production and consumption.

Q3: What is the Purvodaya program, and what is its objective?

Ans: The Purvodaya programme is a government-sponsored initiative designed to speed up the development of eastern India by creating an integrated steel hub. The program’s goals are to enable quick capacity expansion, generate substantial job opportunities, and increase the overall cost and quality competitiveness of steel producers.


  • Pritipalit

    Priti Palit, an accomplished edtech writer, boasts a wealth of experience in preparing candidates for multiple government exams. With a passion for education and a keen eye for detail, she has contributed significantly to the field of online learning. Priti's expertise and dedication continue to empower aspiring individuals in their pursuit of success in government examinations.

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