Indian Steel Industry Shows Strong Growth Amid Emerging Challenges in 2025-26

1. At a Glance

2. Why in the News

3. Background & Evolution

4. Core Static Facts

5. Multi-Dimensional Analysis

Economic - Steel contributes ~2% of GDP; multiplier effect across construction (~60% demand), capital goods, auto. - Import dependence on coking coal (>85% imported) remains structural vulnerability. - Sharp drop in imports (-46.47%) + export surge (+35.8%) signals import substitution gains [S2].

Strategic / Geopolitical - Surge of cheap Chinese, Vietnamese, Korean steel triggered safeguard duty; CVD on welded stainless-steel pipes from China/Vietnam; ADD on seamless tubes (China), electro-galvanized (Korea/Japan/Singapore) [S4]. - Critical input for defence indigenisation, railways, shipbuilding.

Environmental - Steel sector accounts for ~12% of India's CO₂ emissions; Green Steel Mission / Taxonomy (2024) — defines green steel by CO₂ intensity (≤2.2 t CO₂/t steel for 5-star rating). - Drive toward hydrogen-based DRI, scrap-based EAF, renewables in steel plants.

Administrative / Policy - Mission Purvodaya — accelerated development of integrated steel hub in eastern India (Odisha, Jharkhand, Chhattisgarh, WB, north AP) leveraging iron-ore belt. - DMI&SP Policy mandates domestic steel in govt procurement.

6. Recent Developments (last 12-18 months)

7. Prelims Hooks

8. Mains Relevance

9. Related Topics to Study Next

10. Common Errors / Trap Areas

11. Sources

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