Charting a ‘self-reliant path’ for India’s stainless steel industry

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Charting a ‘self-reliant path’ for India’s stainless steel industry

Charting a ‘self-reliant path’ for India’s stainless steel industry

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Sep 27,25

For India, achieving self-reliance in stainless steel is not just an industrial goal; it is a national imperative for building a resilient, competitive, and future-ready economy, writes Rajamani Krishnamurti, President, Indian Stainless Steel Development Association (ISSDA).

Charting a ‘self-reliant path’ for India’s stainless steel industry

India today holds the distinction of being the world’s third-largest producer of stainless steel. Yet, our per-capita consumption is a modest 3.2 kg, barely half the global average of 6.5 kg. This paradox captures both the immense potential and the urgent gaps in India’s stainless steel growth story.

The country possesses an installed capacity of 7.5 million tonnes. However, production currently hovers around 4.4 million tonnes, while domestic consumption has already touched 4.8 million tonnes. The shortfall is bridged largely through imports, predominantly from China and ASEAN countries, many of them influenced by Chinese capital. This over-reliance on foreign supply is a stark reminder that unless India fully utilises its existing capacities and strengthens its base, true resilience will remain out of reach.

Stainless steel is not just another alloy. It is the backbone of modern civilisation—integral to infrastructure, transportation, clean energy, healthcare, food safety, consumer goods, and architecture. Its unique combination of strength, durability, hygiene, and recyclability makes it indispensable in shaping a modern economy. Quite simply, India’s ability to secure self-reliance in stainless steel will directly influence its capacity to build resilient infrastructure, advance green technologies, and remain globally competitive.

Global and domestic headwinds

The sector is not without its challenges. Global tariff wars, volatile raw material prices, and fragile supply chains, first shaken by the pandemic and later by geopolitical conflicts, have highlighted the risks of import dependence. Nearly three-fourths of India’s stainless steel scrap requirement is imported, leaving the industry exposed to both price volatility and supply shocks.

Trade arrangements add to the complexity. Zero-duty imports under ASEAN agreements and preferential access granted to Japan and Korea through FTAs weigh heavily on Indian producers. Combined with rising costs of energy, logistics, and regulatory compliance, the pathway to sustainable scaling looks increasingly demanding.

Domestically, fragmentation of the industry, predominance of MSMEs, uneven quality standards, and limited R&D investments continue to restrict competitiveness. These bottlenecks not only constrain innovation but also prevent India from moving decisively into high-value stainless steel applications.

Policy support: Momentum towards self-reliance

The government has taken important steps to address these concerns. The Production Linked Incentive (PLI) Scheme for Specialty Steel, announced in 2021 with an outlay of Rs 63.22 billion, is a bold initiative. With the potential to attract Rs 400 billion in investment, it seeks to cut import dependence, promote value-added products, and expand specialty steel capacity by 25 million tonnes within five years.

Yet, despite this progress, one reality remains: the National Steel Policy of 2017 is largely oriented towards carbon steel. Stainless steel, critical to sectors like renewable energy, water management, food processing, and healthcare, has not received the focused policy attention it merits.

A call for a National Stainless Steel Policy

Stainless steel is not a story of scale alone—it is a story of value, performance, and sustainability. Its corrosion resistance, long life, and 100 per cent recyclability position it as the material of choice for India’s future: smart cities, green mobility, hydrogen economy, renewable energy systems, and safe food supply chains.

To unlock its full potential, India needs an exclusive National Stainless Steel Policy, one that:

Recognises stainless steel as a strategic sector for sustainable development.
Secures critical raw materials like nickel, molybdenum, and ferrochrome through integration and partnerships.
Creates industrial clusters to strengthen MSMEs, quality standards, and competitiveness.
Incentivises R&D and the development of advanced stainless steel grades.
Builds a robust ecosystem for scrap recycling and green manufacturing.
Positions India as a global hub for high-value stainless steel products.

Such a policy framework would give the industry clarity, visibility, and direction. Much like semiconductors or specialty chemicals, stainless steel must be treated as a strategic sector, where India can lead the world not by volume, but by innovation and sustainability.

Building a competitive and sustainable ecosystem

For this, trade and tax reforms must walk hand in hand with industrial policy. Today, 62 per cent of steel imports enter India duty-free under FTAs. Without recalibration of trade agreements, tariff measures alone will fall short. Rationalising GST, addressing cascading taxes, and ensuring a level playing field for domestic producers are equally vital.

Opportunities ahead are immense. Urbanisation, a rising middle class, the push for clean energy, and the creation of smart infrastructure will drive stainless steel demand. The current per-capita consumption gap is not a weakness—it is a window of opportunity.

To seize it, India must move beyond the comfort of volume growth and embrace a value-driven approach. That means investing in R&D, creating world-class recycling systems, and transitioning to green stainless steel production. While stainless steel is 80 per cent recyclable, India’s reliance on imported scrap shows the urgency of building domestic circular supply chains.

Global examples offer inspiration. Japan thrives on high-value stainless steel niches. South Korea’s POSCO shows the effectiveness of integrated clusters. Europe is leading by embedding circular economy practices and green energy in steelmaking. For India, the path forward is clear: build clusters, secure raw materials, invest in recycling, and embed sustainability into manufacturing.

The road ahead

The stainless steel sector in India stands at an inflection point. Demand is rising, global conditions are volatile, and the government’s call for self-reliance is clear. The next chapter of growth will be determined by how effectively industry and policymakers come together to:

Secure supply chains for critical inputs
Advance R&D in specialty grades and alloys
Scale up circular economy practices
Embed green and energy-efficient technologies
Establish globally competitive clusters

Self-reliance does not mean isolation. It means resilience, competitiveness, and the ability to command respect in global markets. It means producing stainless steel that embodies world-class quality, sustainability, and innovation—while serving India’s own economic and social priorities.

The future of India’s stainless steel industry will not be defined merely by how many tonnes we produce, but by the value we create. By shifting from a volume-driven to a value-driven model, stainless steel can emerge as one of the cornerstones of India’s manufacturing renaissance.

With the right blend of government vision, industry commitment, and global best practices, stainless steel can be transformed into a strategic driver of jobs, innovation, and sustainable growth. For India, achieving self-reliance in stainless steel is not just an industrial goal; it is a national imperative for building a resilient, competitive, and future-ready economy.

About the author:

Rajamani Krishnamurti is the President of Indian Stainless Steel Development Association (ISSDA). He has over 30 years of experience and served in leadership positions at various business houses like ESSEL Group, ESSAR Group, RPG Group, JSW Group and CII, among others.