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India’s steel sector is set to enter a strong upcycle, with the World Steel Association projecting nearly 9% demand growth in both 2025 and 2026, the fastest among major economies. The surge is being fuelled by broad-based expansion across construction, capital goods, automobiles, and infrastructure. India’s steel consumption continues to rise from an already elevated base. Finished steel use stood at 136.29 million tonnes (MT) in FY24 and increased to 150.23 MT in FY25. In the first four months of FY26 (April–July 2025), consumption reached 51.45 MT, reflecting sustained underlying demand from key sectors. Government policy support is further bolstering the value-added steel segment. Under the Production-Linked Incentive (PLI) Scheme for Specialty Steel, with an outlay of Rs 6,322 crore, the Centre aims to add about 25 MT of new specialty capacity and attract around Rs 40,000 crore in fresh investment. As of early 2025, Rs 27,106 crore in committed investments had already been received, while an additional Rs 17,000–25,200 crore is expected in the second round. Within the value-added space, coated steel products are emerging as one of the fastest-growing categories. Market estimates place India’s coated steel segment at around $27.7 billion in 2024, projected to grow to $42 billion by 2030 — a compound annual growth rate (CAGR) of 7.4%. Pre-painted steel, in particular, is witnessing rapid uptake driven by rising demand from warehousing, industrial roofing, and premium building envelope applications. On the two high-growth segments, sheet metal components and coating, integrated player Abhay Ispat said sheet metal components continue to play a crucial role in the manufacturing and industrial ecosystem, while the coating business particularly colour-coated steel represents one of the fastest-growing consumption areas within the value-added steel category. This dual focus positions the company to serve both upstream industrial demand and downstream value creation in construction, infrastructure and allied sectors. “India’s steel industry is entering a transformative phase, and Abhay Ispat is committed to meeting this demand with innovation, quality, and accessibility. Our focus on value-added products and an expanding service footprint ensures we’re not just keeping pace with industry growth,” said Vinesh Mehta, chairman of Abhay Ispat. He said the company is strategically poised to expand across. With policy support accelerating (including a specialty steel PLI and the government’s 300-MT capacity vision), and with coated/value-added steel demand scaling across infrastructure and manufacturing, steel companies are positioned to play a central role in India’s next leg of industrial growth and job creation.
