Sitharaman Invites Worldsteel to Open India Office as Steel Demand Shifts
Finance Minister Nirmala Sitharaman invites Worldsteel to establish an Indian presence as India becomes the primary driver of global steel demand.
Union Finance Minister Nirmala Sitharaman has officially invited the World Steel Association (Worldsteel) to consider establishing an office in India. This strategic move comes as the nation emerges as a powerhouse in the global steel market, driving a significant portion of the world's incremental demand.
Addressing the World Steel Association's General Assembly in New Delhi, the Finance Minister highlighted that India's growing production capacity and consumption patterns make it a vital hub for the global industry body.
India: The New Engine of Global Steel Growth
Sitharaman pointed out that while Worldsteel opened a Beijing office in 2006 to cater to China's massive growth, the center of gravity is shifting. According to the Association's own projections, India is now the largest single source of global steel demand growth.
An Indian presence would allow Worldsteel to:
- Strengthen its connection to fast-growing markets in South Asia and South-East Asia.
- Better engage with emerging markets in West Asia and Africa.
- Monitor the rapid expansion of the world's second-largest steel producer.
Surging Production and Consumption Figures
The Finance Minister provided striking data to underscore India's dominance in the sector. Since 2018, India has maintained its position as the world's second-largest steel producer. Key statistics include:
- Production Growth: India's crude steel output rose by 10 per cent in 2025 to reach 165 million tonnes.
- Recent Momentum: Production grew by an additional 6 per cent during the January-August 2026 period, even as global output saw a decline.
- Global Market Share: India's share of global steel production has climbed from 5.2 per cent in 2014 to approximately 9 per cent.
- Consumption Trends: Finished steel consumption reached 164 million tonnes in 2025-26.
Data from the Ministry of Steel further confirms this trajectory, noting that India produced 168.4 million tonnes of crude steel and 160.9 million tonnes of finished steel in 2025-26.
Infrastructure: The Backbone of Steel Demand
The surge in demand is being fueled by massive public investment in national infrastructure. Sitharaman noted that Union government capital expenditure has skyrocketed from roughly Rs 2 lakh crore in 2014-15 to an estimated Rs 12.2 lakh crore in 2026-27.
Construction and infrastructure projects—including highways, railways, ports, and urban transport—currently account for approximately two-thirds of India's total steel usage.
Addressing Global Industry Challenges
While India's trajectory is upward, the Finance Minister acknowledged the headwinds facing the global steel industry. Issues such as falling global production, excess capacity, rising energy costs, and trade restrictions remain significant concerns.
Global crude steel output declined by 2 per cent in 2025 to 1.85 billion tonnes, with a further 0.7 per cent drop recorded during the first eight months of 2026. Furthermore, the Organisation for Economic Co-operation and Development (OECD) projects that global excess steel capacity could rise from 600 million tonnes in 2024 to 720 million tonnes by 2027.
Sitharaman called for coordinated international action to address these imbalances, warning that unilateral tariffs are not a solution. She advocated for multilateral disciplines regarding subsidies that support uneconomic plants and emphasized the need for transparent data.
The Road Ahead: Speciality Steel and Sustainability
Looking forward, the Finance Minister stressed that India must evolve alongside its growing capacity. To secure its position, India must focus on:
- Expanding the production of speciality steel.
- Ensuring raw-material security.
- Reducing carbon emissions through technological advancement and lower-carbon production methods.