Surge in Steel Imports and Challenges for Indian Steel Industry

GS-3 mains : Economy 

Short Notes or Revision Notes 


Question : Examine the factors contributing to India’s shift to a net importer of steel in recent years.


  • India becoming a net importer of steel in 2023-24.
  • 38% surge in finished steel imports (8.319 million tonnes in 2023-24 compared to 6.022 million tonnes in 2022-23).
  • Predatory imports from China threaten India’s self-sufficiency goal (Atmanirbharta) in steel.

Importance of Steel Sector

  • Pivotal role in construction, infrastructure, automobile, engineering, and defense.
  • India is the 2nd largest steel producer globally.
  • Steel sector is a major contributor to India’s manufacturing output.

Government Initiatives

  • National Steel Policy (NSP) 2017: Aims to boost domestic steel consumption, high-quality production, and global competitiveness.
  • Production-linked incentive (PLI) scheme for specialty steel.
  • 100% FDI allowed for the steel sector.


  • Low investment in technology and infrastructure.
  • Raw material availability (iron ore and coking coal).
  • Health and safety concerns.
  • Environmental impact of steel production.

Way Forward

  • Ensure sustainable supply of raw materials.
  • Enhance export competitiveness.
  • Restrict predatory steel imports to protect investments and GDP growth.
  • Steel industry needs to strategize for cost-competitive production.


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