Indian steel sector’s metallics needs apparent, says McKinsey

The growing economy of India 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 article by staff members and contributors to global consulting firm McKinsey & Co. says recycled steel “is emerging as a critical, yet limited, resource,” in the nation.

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

Add the researchers, “By 2030, demand is estimated to be 50 million to 60 million metric tons, with a shortfall of 10 million to 15 million metric tons.”

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 (EAF) steelmaking market share compared with more traditionally iron ore-depending blast furnace/basic oxygen furnace (BOF) processes.

“To meet the evolving demands and ensure business sustainability, Indian steelmakers may need to assess and optimize their portfolios,” write the McKinsey article authors. “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 (DRI)” investments, they say.

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