Key Points
- Government targets 300 million tonnes steel capacity by 2030 and 400 million tonnes by 2035
- Crude steel production grew at 8 per cent annually since FY 2021-22
- Finished steel consumption rose approximately 13 per cent annually reflecting domestic demand
Digitalisation is no longer optional but the “foundational cornerstone of long-term survival” for India’s steel industry, Union minister for Steel and Heavy Industries H.D. Kumaraswamy said on Wednesday (24 June), urging the sector to adopt emerging technologies including artificial intelligence and automation to remain globally competitive.
Speaking at the Chintan Shivir 2026 on Digitalisation in the Steel Sector at Vigyan Bhawan in New Delhi, Kumaraswamy said the future of the steel industry would be determined not by production capacities alone but by its ability to build intelligent, connected and data-driven manufacturing systems.
“Steel is the backbone of nation-building,” Kumaraswamy said, noting that India has retained its position as the world’s second-largest steel producer since 2018 even as demand remains subdued in several advanced economies.
The minister reiterated the government’s long-term vision of increasing India’s steelmaking capacity to 300 million tonnes by 2030 and 400 million tonnes by 2035. He cautioned that achieving these targets would require the industry to address challenges related to raw material security, operational efficiency, decarbonisation, modernisation and export competitiveness.
Crude steel production has expanded at an average annual rate of nearly 8 per cent since FY 2021-22, while finished steel consumption has grown by approximately 13 per cent annually, reflecting strong domestic demand and rapid industrialisation, according to Kumaraswamy.
AI and Digital Twins to Reshape Steel Manufacturing
The minister said technologies including artificial intelligence, machine learning, the Industrial Internet of Things — a network of connected sensors and devices used in manufacturing — digital twins, robotics and advanced data analytics are redefining steel manufacturing globally and must be adopted extensively in India.
Digital twins are virtual replicas of physical systems that allow operators to simulate and optimise performance before making changes on the factory floor. Kumaraswamy said such interventions would help minimise unplanned downtime, reduce human errors and enhance workplace safety.
Digitalisation and automation can significantly improve productivity, optimise energy consumption, reduce operational costs and enable predictive maintenance systems capable of identifying equipment failures before they occur, he added.
Focus on Industry 4.0 Applications
The Chintan Shivir featured thematic sessions on AI-led mining solutions, digital transformation of steel plants, PM Gati Shakti — the government’s infrastructure coordination initiative — and Industry 4.0 applications. Leading startups and industry stakeholders participated in discussions on accelerating the sector’s technological transition.
By the numbers
- 300 million tonnes
- Steel capacity target by 2030
- 8%
- Annual crude steel production growth since FY 2021-22
- 13%
- Annual finished steel consumption growth
The conclave, held under the Ministry of Steel, brought together senior ministry officials along with chairmen and managing directors of major steel public sector undertakings including SAIL, NMDC and MOIL, besides industry leaders and technology experts.
Kumaraswamy framed the digital transformation push within the context of Prime Minister Narendra Modi‘s Viksit Bharat 2047 vision, describing the steel sector as powering infrastructure creation, manufacturing, renewable energy, urbanisation, transportation and defence production.
Your Questions, Answered
What is India's steel production capacity target for 2030?
The government aims to increase India's steelmaking capacity to 300 million tonnes by 2030 and 400 million tonnes by 2035, according to Union minister H.D. Kumaraswamy.
What technologies did Kumaraswamy recommend for the steel industry?
The minister recommended adopting artificial intelligence, machine learning, Industrial Internet of Things, digital twins, robotics and advanced data analytics to improve productivity and reduce costs.
What is India's current ranking in global steel production?
India has retained its position as the world's second-largest steel producer since 2018, according to Kumaraswamy.
What is the Chintan Shivir 2026 on Digitalisation in the Steel Sector?
It is a conclave held by the Ministry of Steel at Vigyan Bhawan in New Delhi featuring sessions on AI-led mining, digital transformation, PM Gati Shakti and Industry 4.0 applications for the steel sector.
