Infrastructure, construction sector leads steel demand in India, Government projects key contributor: Industry Experts

Jul 25, 2025

New Delhi [India], July 25 : According to market experts, 65 per cent of steel produced in India is consumed by the infrastructure and construction sector, with 25-30 per cent of that used specifically in government projects.
Whatever steel is produced in India, out of that 65% is consumed by the infrastructure and construction sector. The remaining is then consumed by the sector of white goods, automobiles," said Sanjay Singh, Director of Strategy and External Relations at Jindal Steel, while speaking exclusively to ANI.
"But major consumption is by the Construction and infrastructure sector, and in this again around 25 to 30 per cent is consumed in the government projects," he said.
Swati Agrawal, CEO and President - Advisory at CARE Analytics and Advisory Pvt Ltd, also highlighted that construction is the primary source of demand.
She said, "Construction is primarily one of the major drivers. Then, of course, we have real estate. I mean, the last two years' boom in real estate has a lot to do with pushing the steel sector."
She further added that, "We have automobiles. We have transitioned towards electric vehicles and charging infrastructure. I mean, we have all the typical levers of growth, like I said, construction, real estate, roads, bridges. Automobiles, electric vehicles -- or transitioning into electric vehicles -- that's a very, very landmark thing"
While speaking to ANI, Sanjay Singh also emphasised the crucial role the safeguard duty has played in insulating Indian manufacturers from the influx of low-cost steel from foreign markets.
"I mean, 12 per cent of safeguard duty, which has been imposed by the Government, is having a tremendous impact. I have spoken to people in the steel sector, and they have given their views that it has provided them with a good cushion against any kind of imports from cheaper economies. It has had a very positive impact," Singh stated.
The Central Government imposed a 12 per cent safeguard duty in April this year with an aim to protect the domestic steel industry from a sudden and sharp increase in steel imports.
The safeguard tariffs are primarily aimed at China, which was the second-biggest exporter of steel to India behind South Korea. The Government has set minimum import prices for five steel product categories ranging from USD 675 per tonne to USD 964 per tonne. Any shipment imported below these prices will attract a 12 per cent safeguard duty.

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