Indian steel sector’s metallics needs apparent, McKinsey says

The growing Indian economy is poised to increase steel consumption and production in the nation. Mills in India likely produced about 160 million metric tons (mtt) of crude steel last year, and that total could rise to as high as 260 million mmt by 2035, according to some estimates.

A December 2025 report from global consulting firm McKinsey & Co. says recycled steel is emerging as a critical, yet limited, resource in India.

India consumed approximately 33 mmt of steel scrap during its 2024 fiscal year, of which 30 percent was imported, according to India-based McKinsey staff members Prabhav Sharma and Rajat Gupta and co-authors Ankit Agarwal and Amit Aggarwal.

The researchers note that by 2030, demand is estimated to be 50-60 mmt, with a shortfall of 10-15 mmt.

The amount of recycled steel India will import depends in part on the ability of scrap-surplus nations to help meet those requirements. Also playing a role will be the presence of electric arc furnace steelmaking market share compared with more traditionally iron ore-depending blast furnace/basic oxygen furnace processes.

“To meet the evolving demands and ensure business sustainability, Indian steelmakers may need to assess and optimize their portfolios,” the McKinsey report says. “The pathways for a low-carbon future include developing a road map for integrating low-carbon technologies such as natural gas and hydrogen-direct-reduced iron."

The full report, titled “Strengthening the future: Steel for growth and resilience,” can be found on the McKinsey website.