The steel ecosystem of India is changing radically. On the one hand, record levels of crude steel production have been reached in the country with 144.299 million tonnes in 202324 and the country is increasing its capacity across major and smaller steelmakers, but on the other hand, the country is heavily experiencing an influx of finished steel imports.
Based on latest estimates released by the Ministry of steel of the Government of India, the total import of finished steel in the year 2023-24 would be 77,171 crore rupees or about 7.374 billion US dollars. This huge importation of steel indicates the growing Indian domestic demand as well as the loopholes in the downstream manufacturing of steel in India.
Imported finishes had increased by 38.2 per cent to 8.320 million tonnes with Indian consumption increasing to 136.291 million tonnes indicating a growth of 13.7 per cent. Such an abrupt increase in import is the signal of one thing only:
➡ India is greatly biased on imported value added products of steel although not due to unavailability of raw material, but rather due to unavailability of down stream capacity.
This import gap of 61, 171 crore is one of the largest industrial startup opportunities in India nowadays. To businesspeople, it is not a challenge, it is a highway. A map of what India desperately should produce inside the country, what segments are unproductive and what new industrial plants can work successfully with the assured demand.
This article presents:
The reason behind this huge reliance on imports.
What are the steel segments that are the largest in the trade deficit?
Top 10 ideas of startup businesses which can fill the importation gap.
Supported decision-making on each opportunity.
Stories of great industrial leaders whose example has worked out.
Project ideas for 2026
The utility of NPCS feasibility reports to the entrepreneur.
Let’s dive deep.
Why India Has a 61, 171 Crore Steel Import bill.
Although India is the second-largest producer of steel in the world, India imports heavy quantities of the finished steel due to:
- Domestic capacity is not equal to demand on specialty and value-added steel. In India most of the large steel plants specialize in:
- HR coils
- Rebars/TMT
- Standard flats and longs
- Basic structural products
Nevertheless, imports prevail in high value segments including:
- Automotive‑grade steel
- Electrical steel
- Stainless steel flats
- Precision tubes
- Coated steel (GI/GL/GA/PPGI)
- API‑grade pipes
- Tool & die steel
- Strong low alloy steel sheets (HSLA).
- The manufacturing industries are growing at a higher rate than the processing of steel. India industrial demand made leaps because of:
- Record housing demand (43 percent of the steel use)
- Infrastructure boom (25 % share)
- Engineering & packaging (22 per cent) sector.
- Automobile/ EV production (9 percent share)
Such sectors demand high-end steel that India is yet to develop an industry in production.
- Importers are very precise, consistent and reliable in delivery. Countries that provide niche-grade steel that include: Japan, South Korea, China, Vietnam and the EU.
- Tighter tolerances
- Higher ductility
- Ultra‑low defects
- CO₂‑certified production
- Technology is being continued to be improved by secondary steel players.
Secondary steel is made up of more than 35 & percentage of total domestic crude steel but has no advanced finishing lines.
- The rate of policy based infrastructure expansion is higher than the capacity additions.
High speed rail, highways, renewable, metro extensions as well as logistics corridors are also demand of steel constituents that are not yet extensive in making in India.
And therefore, the bill of imports of steel to the tune of 61,171 crore is not a shock, neither is it a big business opportunity.
Reference
Government of India, Ministry of Steel.
Formal Website: https://steel.gov.in/
The Annual Report 2024 25 of the Ministry presents the steel production, consumption, value of importation ( 61,717 crore), and sector information as the analytical ground of this paper.
NPCS-Your Industrial Feasibility partner.
The Niir Project Consultancy Services (NPCS) is specialised in preparing Market Survey and Detailed Techno-Economic Feasibility Reports (DPRs) of new industries and manufacturing enterprises.
Our DPRs include
- Complicated process of production.
- Demand analysis Market research.
- Process flow diagrams
- Product mix and capacity planning.
- Specifications of machinery and raw material.
- estimates of project cost, finances and profits.
We assist business men and women in analysing technical feasibility, the viability of the investment, and long-term profitability, i.e. in line with national demand, sector tendencies.
10 Profitable Startups Ideas To cut steel importation gap in India.
There are ten high-potential, high-demand steel business opportunities that will directly respond to the 61,171 crore import burden.
- Automobile Grade Steel Sheet Processing Facility.
- The latter is a set of steel alloys created through the integration of aluminum content, resulting in the formation of steel steel mixtures.<|human|>The latter refers to the series of steel alloys formed by the addition of aluminum content which in turn, forms steel steel mixtures.
- The automotive industry forms the largest importer of steel since India is unable to manufacture sufficient:
– Ultra‑low carbon steels
– Flexible high-strength body panels in automotive.
– Dual‑phase (DP) steels
– IF steels for deep drawing
The reason why this is such a big opportunity.
India has advanced into a world manufacturing center of automotive. Even finer-grade steel is needed in the creation of EV. Local OEMs will give preference to local suppliers in case of equality in quality.
- Entrepreneur Benefits
- High profitability
- Potential of long-term offtake contracts.
- With OEM dependency, there is repeat business.
A pickling/cold rolling/ annealing /skin-pass plant could open up a billion-dollar market.
- Electrical Steel Manufacturing (CRGO/CRNO).
India is an importer of virtually all of its CRGO grade steels and vast volumes of CRNO grade.
– Market Drivers
– Green electricity (solar/wind transformer)
– EV motors
– High‑efficiency appliances
– Transmission & distribution enhancements.
Reasons to Startups to enter this Division.
CRGO/CRNO is a value-based large importation sector in Indian. The domestic production is far too low even when the demand is increasing fast. This provides a highly viable investment opportunity because government measures taken to encourage transformer-grade steel.
- Stainless Steel Flat Products (391304/ 304, 316, 316L, 360)
India consumes large quantities of SS sheets in:
– Railways
– Kitchen equipment
– Elevators
– Food processing
– Architecture
– Petrochemicals
The reason as to why India imports stainless-steel flats.
Less capacity in the domestic market, in terms of narrowing spread inside, on precision and high finish; imports offer better surface quality.
Business Opportunity
The installation of a stainless steel cold rolling and finishing line (BA, No.4, mirror finish) would be a direct replacement of high value imports.
- Accurate Steel Tube Production of EV/Automobile Industry.
Some of the most imported steel products due to include: precision tubes.
– Large tolerance requirements.
– Strength to weight ratio requirements.
– Safety standards
Applications include:
– EV frames
– Crash bars
– Steering components
– Suspension tubes
Why This Sector Is Exploding
India is the biggest market of two-wheelers and three-wheelers, a growing passenger-EV center in the world. Incorporation of a precision tube plant with the use of the HF-ERW technology would guarantee long-term demand.
- Large-Diameter and API-Grade Steel Pipes.
India is an importer of high quantities of:
– API X60, X70, X80 grade pipes
– ERW and SAW pipes
– Oil & gas oil and gas large-diameter pipes.
Market Demand Sources
– Gas grid expansion
– City Gas Distribution (CGD)
– Petrochemical corridors
– Water supply projects
Entrepreneurial Benefits
Good returns and stable government-project demand base are enjoyed by API pipe mills.
- PPGI/PPGL Coloured Coated Steel Suits.
Steel that is colour-coated finds extensive application in:
– Warehousing
– Pre‑engineered buildings
– Retail stores
– Residential roofing
India imports the quality PPGI sheets of high quality which are distinguished by more:
– Coating adhesion
– Paint durability
– Corrosion resistance
Opportunity for Startups
A colour-coating line that has the modern technology of paint-curing and galvanizing would replace most of the imports.
- Industrial Motor Silicon Steel.
Silicon steel is needed in motors, generators, transformers, EV traction motors.
The reason why dependency is so important.
Silicon steel of high grade is not widely available at home; standards of efficiency would require high grades.
Why Startups Should Enter
This will cause a massive demand because of automation in industries, renewable energy, and the production of EV motors.
- Steel Service Centres having Accurate Slitting and CTL Lines.
In the service centres, steel coils are processed into:
– Slitted coils
– Cut sheets
– Blanking parts
Why This Business Can be Useful in decreasing imports.
The process of importing coils should be done before supplying it to MSMEs. Putting a service centre within industrial clusters will ensure that it has a constant demand flow.
- Manmade Steel Structures to Renewable Energy.
India is quickly increasing the capacity to renew; hence the imports of steel increase because of:
Solar module mounting warehouse buildings.
– Wind tower components
– Tracker systems
– Why This Is High‑Value
The push of renewable would go beyond 500 GW which would generate long term demand.
- Precision Processing of Alloy and Tool Steel.
The imports of tool steel and alloy steel are used in the following purposes:
Dies and molds
Cutting tools
Automotive tooling
Defence manufacturing
Why This Segment Is Crucial
The domestic provision of tool steel is inadequately supplied though this is a high-margin business. Trade deficit can be significantly decreased by import replacement in this industry.
Success Stories
Naveen Jindal -Jindal steel and power.
Green belted raw material products and high grade steel products.
Anil Agarwal – Vedanta Group
Developed a portfolio of resources-based metals conglomerate.
- D. Agarwal – Shyam Steel
Growed to be a national TMT brand.
These leaders show how radical industrial investment can revolutionize whole industries.
Top Project Ideas for 2026
Copper finished continuous high grade stainless steel line.
EV‑grade precision tube mill
API pipe manufacturing unit
CR/HRPO automotive sheet processing line.
Automated automated slitting steel service centre.
Silicon steel lamination plant.
PPGI/PPGL plant colour-coated steel.
Solar MMS galvanised structure unit.
Processing of alloy steel tool-room.
Facility of structural fabrication of railroad quality.
Conclusion
The gap in steel imports in India is more than just a statistic ₹61,171 crore, more precisely, is a road map to high-growth industrial entrepreneurship. The huge influx of finished steel imports points at the areas where the domestics are weak and where the upcoming generation of MSMEs must invest. By venturing into other industries like auto sheets, electrical steel, precision tubes, API pipelines, flats made of stainless steel and even the renewable steel constructions, the entrepreneurs will create business globally competitive yet lowering the trade deficit of India.
