India’s Auto Sector Aims to Enhance High-Grade Steel Production to Decrease Import Reliance
India is intensifying its efforts to produce specialized high-grade steel aimed at reducing its reliance on imports, particularly for the automobile sector. Union Minister for Steel and Heavy Industries H D Kumaraswamy made this announcement during the annual convention of the Society of Indian Automobile Manufacturers (SIAM). He emphasized the importance of high-grade steel as a critical component for defense, strategic sectors, and automotive manufacturing, noting that the demand for such materials has surged due to numerous mega-projects across the country.
Government Initiatives to Boost Steel Production
Kumaraswamy highlighted the significant progress made by companies participating in the government’s Production-Linked Incentive (PLI) Auto Scheme. As of March 2025, these companies have collectively invested approximately Rs 29,576 crore in capital, which includes the establishment of new production facilities and the adoption of advanced technologies. This initiative has not only bolstered the manufacturing sector but has also created thousands of direct and indirect jobs across various domains, including supply chain management and research and development. The minister reassured stakeholders that the government is committed to supporting the auto industry in its quest for self-sufficiency in high-grade steel production.
Commitment to Innovation and Sustainability
In a video message, Kumaraswamy assured the Indian auto industry of the steel ministry’s unwavering support. He stated that the ministry is dedicated to enabling the “Make in India” initiative by focusing on the development of specialized steel necessary for specific automotive components. He underscored the importance of innovation, asserting that while government policies lay the groundwork, it is the responsibility of industries, research institutions, and startups to bring these innovations to fruition. The minister also mentioned ongoing collaborations with automakers, technology providers, and energy companies to align with India’s sustainability goals and position the country as a global exporter of sustainable mobility solutions.
Investment and International Cooperation
The PLI Scheme for Automobile and Auto Components, which received approval from the Union Cabinet in September 2021 with an outlay of Rs 25,938 crore, has played a pivotal role in attracting investments to the sector. Recently, Kumaraswamy engaged in discussions with Abdulla Bin Touq Al Marri, the UAE’s Minister of Economy, regarding cooperation on high-grade steel and aluminum. Their talks focused on opportunities under the India-UAE Comprehensive Economic Partnership Agreement (CEPA), emphasizing joint production and trade in materials essential for the automotive and high-end manufacturing sectors. Kumaraswamy proposed the establishment of a joint working group to identify specific opportunities, streamline logistics, and foster long-term collaboration between the two nations.
Future Outlook for the Indian Steel Industry
Kumaraswamy’s call to action for all stakeholders in the industry was clear: to move beyond incremental improvements and embrace bold innovations. He urged them to commit to transformative steps that would position India as a leader in sustainable mobility on the global stage. The minister’s vision reflects a broader strategy to not only enhance domestic production capabilities but also to ensure that India can meet its future demands for high-grade steel without relying on imports. As the country continues to invest in its steel production capabilities, the focus remains on fostering a robust and self-sufficient automotive sector that can compete internationally.
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