India’s steel sector, aiming for 300 MTPA capacity by 2030-31 from the current 205 MTPA, faces significant hurdles across supply chains, policy, and global trade, according to MP Financial Advisory Services LLP

While major steelmakers have proposed 167 MTPA in new capacity, the sector grapples with 85% dependence on imported coking coal, limited steel scrap availability, high carbon emissions, and costly logistics. External challenges include low-cost Chinese imports, EU safeguard duties, and potential carbon tariffs. Delays in greenfield project approvals and higher financing costs compared to China further hinder expansion. Despite these barriers, MPFASL believes India can meet its target through a five-pronged strategy: investing in green and value-added steel, improving raw material linkages, adopting cleaner technologies, easing financing and policy bottlenecks, and strengthening public-private execution. “Innovation and sustainability will be critical in establishing India as a global hub for green and specialty steel,” said MPFASL’s Mahendra Patil.