India’s steel sector is entering a transformative phase marked by rapid consumption growth, ambitious capacity expansion, and an increasing integration of artificial intelligence (AI) across the value chain. Speaking at the Ministry of Steel pavilion during the India AI Impact Summit 2026 in New Delhi, Secretary of the Ministry of Steel, Sandeep Pondrik, highlighted the unprecedented expansion of steel demand and the strategic roadmap aimed at positioning India as a global steel powerhouse.
According to the Secretary, India’s steel consumption has surged dramatically from 77 million tonnes in 2014–15 to approximately 152 million tonnes in 2024–25, reflecting strong infrastructure development, urbanisation, and industrial expansion across the country. This near doubling of domestic consumption within a decade underscores the structural demand growth driven by sectors such as construction, transportation, energy, and manufacturing.
Capacity Expansion Targets and Long-Term Vision
During the meeting, Pondrik was optimistic about the expected growth in India’s crude steel capacity, which is expected to touch 300 million tonnes by 2030-31 and then further grow to 400 million tonnes by 2035-36. These estimates are in line with the overall industrial policy framework of India, which focuses on increasing self-reliance, improving manufacturing competitiveness, and implementing large-scale infrastructure development projects as part of the country’s development schemes.
The capacity addition plans are also important from the perspective of supply chains. As the world’s second-largest steel producer, India is planning to shift from being a volume-based steel producer to a technologically advanced and sustainable steel producer.
AI as a Catalyst for Digital Transformation in Steel
The Ministry of Steel pavilion at the summit provided a platform for engagement between the steel industry’s key players, iron ore miners, and AI innovators. The meeting enabled future-focused dialogue on the integration of artificial intelligence in mining, processing, and production chains. Speakers shared roadmaps that showcased the optimisation, predictive maintenance, stockpile management, and efficiency gains through AI.
The adoption of AI in the steel industry is gradually being perceived as a necessity rather than a desirable technology upgrade. Speakers at the summit clarified that digitalisation can help lower operational costs, enhance safety standards, and improve ESG performance. AI-driven drilling accuracy, quality control, and supply chain optimisation are some of the impactful applications being considered to transform traditional industrial processes.
Strategic Role of the India AI Impact Summit 2026
The India AI Impact Summit 2026, organized at the Bharat Mandapam in New Delhi, aims to bring together policymakers, international innovators, startups, and industry leaders to facilitate the adoption of sector-specific AI. This event, organized under the IndiaAI Mission, aims to leverage AI innovation to drive industrial applications through collaborative platforms, exhibitions, and policy engagement.
In this context, the AI in Steel Pavilion highlights the key problem statements in the industry and encourages solution providers to develop scalable AI solutions for steel production. This effort aims to facilitate strategic partnerships between the traditional heavy industry sector and the new AI industry sector, thus filling the technology divide in one of the major industrial sectors of India.
Towards a Global Steel Hub
The meeting of representatives from steel manufacturers, miners, and AI technology developers at the summit marks a significant policy change in the integration of Industry 4.0 in the steel industry. As India increases its crude steel production capacity and with domestic demand continuing to increase, the role of digital transformation in maintaining productivity and competitiveness in the global market cannot be overstated.
Further, the government’s focus on AI adoption in the steel sector is in line with the overall vision of the country to harness the power of cutting-edge technologies to fuel inclusive growth in the industrial sector. By pursuing capacity expansion and innovation together, India is poised not only to be a leading steel producer but also a technologically advanced manufacturing destination that can cater to future demands in the global market.
In conclusion, the Ministry of Steel’s participation at the India AI Impact Summit 2026 highlights a pivotal moment for the sector. With consumption reaching historic highs and ambitious capacity targets on the horizon, the integration of AI, strategic collaborations, and policy support are set to redefine India’s steel industry trajectory, reinforcing its ambition to emerge as a leading global steel hub in the coming decades.
Sources
Research Symposium On AI & Its Impact
From Vision to Impact: AI for People, Planet, and Progress
(IRuniverse Rohini Basunde)
