New Delhi [India], October 12 (ANI): Union Finance Minister Nirmala Sitharaman on Monday invited the World Steel Association (Worldsteel) to consider opening an office in India, citing the country's growing importance in global steel demand and its expanding production capacity.
Addressing the World Steel Association's General Assembly in New Delhi, Sitharaman said India had emerged as a major source of incremental demand for steel, creating an opportunity for the global industry body to strengthen its presence in the country.
"As Worldsteel enters its 60th year, I would invite the Association to consider establishing an office in India," she said.
Sitharaman noted that Worldsteel had opened its Beijing office in 2006, when China accounted for much of the growth in global steel demand. She said India was now playing an increasingly important role in driving demand.
"On Worldsteel's own projections, India is now the largest single source of that growth," she said, adding that an Indian office would bring the association closer to fast-growing steel markets in South Asia, South-East Asia, West Asia and Africa.
India, the world's second-largest steel producer since 2018, increased crude steel output by 10 per cent in 2025 to 165 million tonnes, according to figures cited by the Finance Minister. Production rose a further 6 per cent during January-August 2026, even as global output declined.
Sitharaman said India's share of global steel production had increased from 5.2 per cent in 2014 to around 9 per cent. Domestic demand has also strengthened, with finished steel consumption reaching 164 million tonnes in 2025-26.
As per data from the Ministry of Steel, India produced 168.4 million tonnes of crude steel and 160.9 million tonnes of finished steel in 2025-26, while domestic consumption reached 163.7 million tonnes.
The sector continued to expand in the first half of the current financial year. India recorded steel imports of 654.4 thousand tonnes, valued at Rs 7,496.2 crore, and exports of 561.8 thousand tonnes during the period, according to the data provided.
Sitharaman said India's steel demand was being supported by sustained public investment in infrastructure. Union government capital expenditure has risen from approximately Rs 2 lakh crore in 2014-15 to Rs 12.2 lakh crore in 2026-27.
Construction and infrastructure account for approximately two-thirds of India's steel use, investing in highways, railways, ports and urban transport being an important source of demand.
However, she said the global steel industry was facing challenges from falling production, excess capacity, rising energy costs and trade restrictions. Global crude steel output declined 2 per cent in 2025 to 1.85 billion tonnes and fell a further 0.7 per cent during January-August 2026.
The Organisation for Economic Co-operation and Development projects global excess steel capacity to increase from 600 million tonnes in 2024 to 720 million tonnes by 2027.
Sitharaman called for coordinated international action to address the problem, arguing that unilateral tariffs would not resolve the underlying imbalance.
"A lasting correction of global excess capacity requires multilateral disciplines on the subsidies that sustain uneconomic plants, supported by transparent data," she said.
She also stressed the need for India to expand production of speciality steel, improve raw-material security and reduce emissions as the industry grows.
Sitharaman said India needed to combine capacity expansion with technological advancement and lower-carbon production to strengthen its position in the global steel industry. (ANI)
Sitharaman invites Worldsteel to open office in India as steel demand shifts
