South India set to play a key role in India’s next phase of steel growth: Experts

South India is poised to play a pivotal role in India's upcoming steel growth phase, according to experts. With an installed crude steel capacity of 46 million tonnes (mt) and production of 31 mt in FY26, the region is set for expansion, according to Vivek Nishant Nath, Director (Commercial) of NMDC. The resource availability for production, particularly raw materials, will be crucial in supporting future steel production.

KK Maheshwari, President of FTCCI, emphasized the need for ongoing government engagement on policy matters and energy costs, both of which remain significant concerns for steel manufacturers. The region boasts a robust industrial base to build upon as India aims to reach a 300 mt steel capacity target by 2030. A knowledge report titled "The Structural Gap: The demand-supply imbalance reshaping South India’s steel market" underscores the region's growing significance in India's industrial and steel landscape.

The report highlights that South India accounts for over 30% of the country's GDP, contributing 18.8% of India's global crude steel output. The report also underscores the strategic importance of maritime infrastructure, noting that six of India's 12 major ports are located along the country's two coastlines. Between FY26 and FY30, South India is expected to add 15.08 mt of crude steel capacity, bringing the region's total to 61.30 mt, representing 23% of the national figure.