Steel Demand: A Barometer for Growth
India is quietly becoming a global manufacturing force — and at the heart of it is steel.
Steel consumption rose from 100 million tons in FY20 to 136 million tons in FY24 — a sharp increase that speaks volumes. Production is growing at 6% CAGR, far outpacing China (1%) and a global average that’s declining.
Policy Backing and Production Ambition
India is already the second-largest steel producer in the world. And this isn’t a fluke — it’s strategic. The National Steel Policy is driving expansion, with targets to increase capacity from 142 million tons in 2020 to 200 million tons by 2030.
Why Steel Tells a Bigger Story
Steel isn’t just a commodity — it’s a core indicator of economic activity. Rising steel consumption typically signals strength in:
- Infrastructure development
- Auto and transportation sectors
- Real estate and housing
- Railways and industrial corridors
In short: if India is using more steel, it means India is building — and building big.
Manufacturing Pulse: PMI Leads the Way
India’s Manufacturing PMI stands at 57.1, the highest among major economies. This isn’t an isolated metric — it’s supported by upward momentum across:
- New orders
- Output levels
- Hiring activity
- Supplier performance
All signs of a manufacturing cycle gaining strength.
Investor Lens: From Inputs to Industrial Alpha
This isn’t just cyclical noise — this is structural transformation. India is not just consuming raw inputs; it’s converting them into world-class output at scale.
And when that shift happens, long-term value creation follows.
The takeaway? India is not just growing. It’s producing. And steel is the spark lighting up the factory floor.
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