India Steel Consumption to Grow 7-8%: Tata Steel CEO
Tata Steel CEO T.V. Narendran predicts 7-8% steel consumption growth in India and calls for local supply chain resilience.
India is poised for a significant surge in its metals sector, with steel consumption projected to rise by 7% to 8% or even higher in the coming years. This optimistic outlook comes as domestic demand strengthens across multiple sectors, providing a robust foundation for the industry's expansion.
Speaking at the Indian Foundation for Quality Management (IFQM) Symposium 2026, Tata Steel CEO and Managing Director T.V. Narendran expressed high confidence in the sector's trajectory. He noted that the outlook for the next three to four years remains exceptionally positive.
Drivers of Demand: From Autos to Infrastructure
The growth in steel usage is being fueled by a combination of structural changes and diverse market needs. Narendran highlighted several key pillars supporting this momentum:
- Automobile Sector: Recent changes in the Goods and Services Tax (GST) framework have acted as a catalyst, driving significant growth within the automotive industry.
- Infrastructure and Industry: There is sustained, heavy demand stemming from large-scale industrial projects and national infrastructure developments.
- Urban-Rural Balance: Unlike previous cycles, the current growth is seeing a more balanced distribution across both urban and rural markets, ensuring a wider consumption base.
The Shift Toward Localised Supply Chains
Addressing the changing landscape of global trade, the Tata Steel chief emphasized that the era of purely cost-driven logistics is shifting. As global tariffs and trade barriers rise, the necessity for localisation has become a strategic priority.
"I think it is inevitable because more and more countries, companies, and industries are looking at building local supply chains and building resilience and not just optimizing on costs," Narendran stated.
He issued a clear message to global players looking to tap into India's massive economic potential: to participate in the Indian market, companies must commit to the country. He advocated for a model where international entities invest domestically, manufacture within India, and create local employment to serve the Indian consumer.
The Road to Green Steel
While the industry's future looks bright, the transition to sustainable manufacturing remains a complex challenge. Narendran remarked that India is currently in the early stages of its green steel journey.
He suggested that for India to successfully navigate this transition, it must observe how other major economies, such as those in Europe, are managing the shift. According to the CEO, three critical elements are required to make green steel a reality:
- Policy Support: Government frameworks that encourage sustainable practices.
- Customer Readiness: A market and consumer base willing to absorb the higher costs often associated with green manufacturing.
- Industrial Investment: Significant capital commitment from the industry to upgrade technologies.