India’s Staggering Steel Climb: 33 Million Metric Tons in Two Years

India’s steel demand continues its impressive climb, with the Joint Plant Committee reporting a rise to 152 million metric tons in 2024–25. This marks a 16 million metric ton increase from 2023–24, which itself had grown 17 million metric tons YoY. This staggering 33 million metric ton jump over two years translates to nearly 14% compound yearly growth rate, a feat unmatched by most major economies. However, this surge comes amid questions about the sectors driving the spike, as traditional steel-consuming industries like two-wheelers and housing remain tepid.

Despite India's automotive industry struggling to regain pre-2019 momentum, and real estate sector growth appearing lethargic, the impetus behind the growth likely stems from centrally funded infrastructure projects such as highways, railways, and defence installations.

Per Capita Steel Usage: A Statistical Pygmy

When viewed through the lens of per capita consumption, India’s trajectory remains modest. In 2019, the average stood at 74.2 kg. The pandemic-induced lull in 2020 brought this down sharply to 64 kg, a 13.7% contraction. The years that followed showed commendable resilience, with an 18% increase in 2021, and 8.6% and 13.9% upticks in 2022 and 2023, respectively. By 2024–25, India’s per capita steel consumption climbed to 107.1 kg, based on an estimated population of 1.42 billion.

While this shows domestic dynamism, it remains diminutive when compared globally. India's usage ranks far below the world average of 219.3 kg, with advanced industrial nations dwarfing the subcontinent’s figures.

Asia’s Giants: South Korea, Taiwan & China Lead the Way

As per worldsteel. South Korea’s per capita steel consumption continues to dazzle in 2023, reaching a staggering 1056.6 kg, nearly ten times India’s. Taiwan follows with 725.9 kg, and China, despite its vast population, impresses with 628.3 kg. These countries benefit from highly developed industrial ecosystems, export-driven economies, and intensive fabrication industries, enabling such robust usage.

Japan, the original Asian industrial powerhouse, logs 432.5 kg per capita, indicative of continued reliance on automotive, shipbuilding, and heavy machinery sectors.

Europe: A metallurgical Stronghold

Europe presents a veritable pantheon of high-consumption nations. Czechia stands out at 534.1 kg, trailed by Türkiye (443.8 kg), Italy (399.6 kg), and Austria (356.5 kg). Germany, Europe’s largest economy, registers 336.5 kg, owing to its auto manufacturing behemoth and engineering sectors.

Other key European figures include Sweden (308.2 kg), Poland (287.5 kg), Netherlands (260.5 kg), and Slovakia (351.2 kg). Belgium-Luxembourg, often reported as a combined economic region, reached 219.4 kg, just at the global average.

France, despite being a G7 nation, shows 153.7 kg per capita, still nearly 50% higher than India. Romania (206.5 kg) and Hungary (228.1 kg) also surpass India significantly.

The Americas: Steady Industrial Appetite

In North America, Canada logs a strong 328.0 kg per capita, with the United States at 266.3 kg. Mexico follows with 221.8 kg, barely above the global mean but more than double India’s.

In South America, Brazil consumes 110.3 kg and Argentina 108.9 kg, both marginally above India. Chile (96.7 kg) and Colombia (84.2 kg) remain below the global mean but continue on an upward trend. Peru (79.8 kg) and Ecuador (68.3 kg) trail behind.

Middle East, Africa & the Under-Consumers

Iran, with significant domestic steel capacity, posts 219.2 kg per capita, nearly mirroring the global average. Saudi Arabia reports 235.5 kg, benefiting from large-scale infrastructure programs like NEOM and Vision 2030. UAE trails slightly with 198.4 kg.

In Africa, South Africa leads with 74.5 kg, while Nigeria reports 45.2 kg and Egypt logs 82.6 kg. These figures reflect economic disparities and underdeveloped manufacturing bases.

Closer Comparisons: India Among Similar Economies

Among other developing economies, Indonesia consumes 99.5 kg per capita, the Philippines 91.7 kg, and Vietnam impresses with 233.4 kg, thanks to its thriving export manufacturing and industrial base. Thailand logs 258.2 kg, largely due to its automotive and appliance industries.

Pakistan, India’s regional peer, logs only 45.1 kg, while Bangladesh records a modest 67.8 kg. These figures reaffirm that while India has grown, there’s considerable room for advancement.

Key Takeaways:

• India consumed 152 million metric tons of steel in 2024–25, up by 33 million metric tons in 2 years.

• India’s per capita steel usage is 107.1 kg, far behind South Korea (1056.6 kg), China (628.3 kg), & Germany (336.5 kg).

• Countries like Vietnam (233.4 kg), Saudi Arabia (235.5 kg), & Mexico (221.8 kg) show higher steel usage per person despite smaller economies.