India developing specialised steels to power auto manufacturing growth: HD Kumaraswamy, ETManufacturing

Union Steel Minister HD KumaraswamyUnion Steel Minister HD Kumaraswamy on Thursday underlined India’s determination to build a globally competitive steel ecosystem by focusing on specialised steels required for the country’s automotive sector. Speaking at a SIAM event, he stressed that self-reliance in these advanced grades is critical for supporting the growth of India’s auto industry, now the third largest in the world.

“India’s steel sector is one of the fastest growing in the world. But growth today cannot only be about crude production. It must be about innovation, value-addition, and meeting the demand for specialised steels, particularly for automobiles,” Kumaraswamy said.

India’s automotive industry is rapidly diversifying into electric vehicles, lightweight materials, and safety-focused components. This transformation requires specialised steels such as high-strength, corrosion-resistant, and electrical steels for EV motors, battery housings, and structural parts. Currently, much of this demand is met through imports, raising costs and creating supply risks for OEMs and suppliers.

Kumaraswamy emphasised that domestic development of these niche grades will strengthen the competitiveness of Indian automakers while reducing reliance on global suppliers. “Self-reliance in special steels is not only about reducing imports; it is about ensuring that India can lead in the next generation of mobility solutions,” he said.

Incentives and investments

The government has already launched a Production-Linked Incentive (PLI) scheme worth ₹18,000 crore to catalyse the domestic production of speciality steels. The initiative has attracted projects worth over ₹24.8 lakh crore, creating capacity across mills, suppliers, and testing agencies.

According to the minister, the scheme is also generating thousands of jobs in manufacturing, supply chain management, and quality assurance. “The government can set policy, but it is industry and institutions that will build capacity at global scale. This partnership is vital if India is to emerge as a hub for specialised steels,” he noted.

The Steel Ministry is also collaborating with technology providers and energy companies to ensure that India’s move into special steels aligns with the country’s decarbonisation commitments. The long-term vision is to make India a net exporter of auto-grade special steels, positioning the country as both a global supplier and a sustainability-driven manufacturer.

“Our aim is simple: support the auto sector’s global growth ambitions with an equally world-class steel ecosystem. Together, we can ensure roads that are stronger, cities that are greener, and an industrial future that is sustainable,” Kumaraswamy said.

• Published On Sep 11, 2025 at 11:58 AM IST

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