India’s Steel Production Trends by State in 2025

India’s steel production in 2025 is projected at 156 MT, driven by key states, creating jobs and impacting economic growth significantly.

India’s steel production serves as a cornerstone of its development, influencing everything from skyscrapers to automobiles.

In 2025, the nation is expected to produce approximately 156 million tonnes (MT) of crude steel, solidifying its status as a global leader in the iron and steel sector.

However, production levels differ significantly among states and Union Territories (UTs)—some are major steel producers, while others contribute minimally.

This article will examine the state-wise steel production in India for 2025, highlight key trends, and discuss the significance of these findings.

Steel Production in Every Indian State 2025

state wise steel production in India 2025
RankState/Union TerritorySteel Production (Million Tonnes)
1Odisha32.0
2Chhattisgarh28.0
3Jharkhand25.0
4Karnataka20.0
5Maharashtra15.0
6Andhra Pradesh10.0
7Gujarat8.0
8Tamil Nadu6.0
9West Bengal5.0
10Uttar Pradesh3.0
11Telangana2.0
12Haryana1.0
13Punjab0.5
14Rajasthan0.5
15Andaman and Nicobar Islands0.0
16Arunachal Pradesh0.0
17Assam0.0
18Bihar0.0
19Chandigarh0.0
20Dadra and Nagar Haveli and Daman and Diu0.0
21Delhi0.0
22Goa0.0
23Himachal Pradesh0.0
24Jammu and Kashmir0.0
25Kerala0.0
26Ladakh0.0
27Lakshadweep0.0
28Madhya Pradesh0.0
29Manipur0.0
30Meghalaya0.0
31Mizoram0.0
32Nagaland0.0
33Puducherry0.0
34Sikkim0.0
35Tripura0.0
36Uttarakhand0.0

Percentage share of every Indian State in Steel production

percentage share of indian state in steel production
RankState/Union Territory% Share of Steel Production
1Odisha20.51%
2Chhattisgarh17.95%
3Jharkhand16.03%
4Karnataka12.82%
5Maharashtra9.62%
6Andhra Pradesh6.41%
7Gujarat5.13%
8Tamil Nadu3.85%
9West Bengal3.21%
10Uttar Pradesh1.92%
11Telangana1.28%
12Haryana0.64%
13Punjab0.32%
14Rajasthan0.32%
15Andaman and Nicobar Islands0.00%
16Arunachal Pradesh0.00%
17Assam0.00%
18Bihar0.00%
19Chandigarh0.00%
20Dadra and Nagar Haveli and Daman and Diu0.00%
21Delhi0.00%
22Goa0.00%
23Himachal Pradesh0.00%
24Jammu and Kashmir0.00%
25Kerala0.00%
26Ladakh0.00%
27Lakshadweep0.00%
28Madhya Pradesh0.00%
29Manipur0.00%
30Meghalaya0.00%
31Mizoram0.00%
32Nagaland0.00%
33Puducherry0.00%
34Sikkim0.00%
35Tripura0.00%
36Uttarakhand0.00%

Steel Production Value in Billion USD

Steel production Value of India
RankState/Union TerritorySteel Production (Billion USD)
1Odisha42.68
2Chhattisgarh37.32
3Jharkhand33.33
4Karnataka26.67
5Maharashtra20.00
6Andhra Pradesh13.33
7Gujarat10.67
8Tamil Nadu8.00
9West Bengal6.67
10Uttar Pradesh4.00
11Telangana2.67
12Haryana1.33
13Punjab0.67
14Rajasthan0.67
15Andaman and Nicobar Islands0.00
16Arunachal Pradesh0.00
17Assam0.00
18Bihar0.00
19Chandigarh0.00
20Dadra and Nagar Haveli and Daman and Diu0.00
21Delhi0.00
22Goa0.00
23Himachal Pradesh0.00
24Jammu and Kashmir0.00
25Kerala0.00
26Ladakh0.00
27Lakshadweep0.00
28Madhya Pradesh0.00
29Manipur0.00
30Meghalaya0.00
31Mizoram0.00
32Nagaland0.00
33Puducherry0.00
34Sikkim0.00
35Tripura0.00
36Uttarakhand0.00

India’s Steel Strength

In 2025, India’s steel production is projected to reach 156 MT, an increase from 144.3 MT in 2024, reflecting an 8% growth according to industry predictions.

This positions India as the second-largest steel producer globally, following China (over 1,000 MT). Major steel manufacturers in India, such as Tata Steel, JSW Steel, and SAIL, are pivotal to this growth.

Only 14 out of India’s 28 states and 8 UTs are involved in steel production, primarily due to their access to essential resources like iron ore, coal, and significant manufacturing facilities.

Economic Impact of Steel

The iron and steel sector in India is a significant source of employment, providing over 2 million jobs in 2025.

States such as Odisha (20.51% of production) and Chhattisgarh (17.95%) employ thousands in facilities like Bhilai and Paradip.

Steel exports, valued at $10 billion each year, enhance India’s economy, with Gujarat (5.13%) and Andhra Pradesh (6.41%) utilizing ports to export to nations like the UAE.

Smaller states, including Punjab (0.32%) and Haryana (0.64%), contribute less to overall production but still play a role in supporting local employment through smaller mills.

Challenges Holding Back Growth

Despite its robust position, steel production in India encounters several challenges. Elevated coal and power costs adversely affect states like Karnataka (12.82%) and Maharashtra (9.62%), increasing production costs.

Land disputes hinder the establishment of new steel plants, particularly in Telangana (1.28%), where projects are often delayed.

Environmental regulations compel companies to implement more sustainable technologies, which can be particularly challenging for smaller facilities in Uttar Pradesh (1.92%) and West Bengal (3.21%).

Reasons for Variations Among States

The production of steel in India varies by state due to several factors:

  • Raw Materials: States such as Odisha, Chhattisgarh, and Jharkhand possess iron ore and coal mines, making them suitable locations for steel manufacturing facilities in India.
  • Infrastructure: Large plants, such as JSW’s Vijayanagar in Karnataka, require substantial investments that states like Bihar or Kerala (0 MT) are unable to provide.
  • Location: Coastal regions like Gujarat and Andhra Pradesh have the advantage of easily exporting steel via ports, in contrast to landlocked Rajasthan (0.32%).
  • Policies: The Ministry of Steel’s Mission Purvodaya supports eastern states like Odisha, giving them a competitive edge.

Future Growth and Innovation

Steel production in India has shown consistent growth, increasing from 110 MT in 2019 to a projected 156 MT by 2025.

By 2030, India aims to reach 300 MT, with new steel plants planned in Andhra Pradesh and Maharashtra.

The emergence of green steel, which utilizes hydrogen instead of coal, is being developed in Jharkhand and Karnataka, significantly reducing emissions.

Additionally, the iron and steel sector in India is incorporating AI technology to enhance efficiency, particularly in Odisha’s advanced facilities.

These advancements may enable smaller states like Telangana to improve their standings.

The Importance of Steel

Steel is fundamental to the construction of India’s cities, railways, and factories, and the country’s position in global steel production is a source of national pride and economic benefit.

However, 22 states and Union Territories – such as Delhi, Lakshadweep, and all Northeastern states except Assam – do not produce steel due to a lack of resources or manufacturing plants.

Consequently, they depend on states like Odisha or Jharkhand, which leads to challenges in the supply chain.

The growth of the steel industry is vital for realizing India’s ambition of a $5 trillion economy, as the demand for steel continues to rise, particularly for infrastructure projects and electric vehicles.

Source

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