India’s steel industry is set for a ₹17,000 crore investment boost as 25 companies signed 42 agreements with the government under the second round of the Production-Linked Incentive (PLI) Scheme for Speciality Steel. This initiative, led by the Ministry of Steel, marks a crucial step in reducing India’s dependence on high-end steel imports and strengthening domestic manufacturing.
PLI 1.1: Driving High-Grade Steel Production
The second round of the PLI scheme, termed PLI Scheme 1.1, was launched in January 2024 by Union Minister of Steel and Heavy Industries HD Kumaraswamy. The scheme focuses on five key speciality steel categories, including:
Coated/plated steel products
High strength/wear-resistant steel
Speciality rails
Alloy steel products & steel wires
Electrical steel
These steel products play a crucial role in automobile manufacturing, white goods production, electrical transformers, and infrastructure development, making domestic production a key strategic priority for India’s industrial growth.
Stronger Industry Response in Second Round
The latest round of the PLI scheme has seen greater participation from the industry, with 25 companies submitting 42 applications compared to 23 companies and 44 applications in the first round. The first round of the scheme had already disbursed incentives for one project, and the government expects more investments to materialize in the coming months.
Speaking at the launch, Minister HD Kumaraswamy highlighted the importance of domestic speciality steel production, urging Indian manufacturers to invest in high-end steel plants to bridge India’s import dependency on advanced steel varieties.
Bridging the Import Gap and Strengthening Self-Reliance
Despite being the second-largest producer and consumer of steel globally, India still imports a significant amount of speciality steel due to limited domestic manufacturing capacity for high-grade varieties. The PLI scheme aims to bridge this gap by incentivizing local steelmakers to develop and scale production capabilities.
The initiative aligns with Prime Minister Narendra Modi’s vision of ‘Atmanirbhar Bharat’, positioning India as a global hub for speciality steel manufacturing. The increased investments will help strengthen supply chains, boost exports, and create new employment opportunities in the steel sector.
Also read: PLI Boosts Telecom Manufacturing with ₹78K Cr Sales
Outlook: The Future of India’s Speciality Steel Sector
With strong industry participation in PLI Scheme 1.1, India is on track to develop a world-class speciality steel ecosystem. As more manufacturers enhance their production capabilities, the sector is expected to witness greater competitiveness, increased innovation, and reduced reliance on imports.
The coming months will be crucial in monitoring project execution, ensuring that the investments translate into tangible production capacity expansions. The steel industry’s response to government incentives and policy support will determine India’s ability to lead in high-grade steel manufacturing globally.
