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In a move poised to redefine India’s global standing in the steel sector, the Government of India is working on a bold and strategic framework to bring public and private steelmakers together. The objective? To consolidate resources, enhance bargaining power, and jointly pursue global opportunities—especially in securing raw materials and adopting cutting-edge technologies.

This unified strategy, spearheaded by the Ministry of Steel, marks a significant shift in India’s industrial policy, emphasizing cooperation over competition among domestic players. It’s a vision anchored in pragmatism: India cannot afford fragmented efforts if it aspires to dominate the global steel value chain.

The Strategic Backbone: Collective Sourcing of Raw Materials

India’s steel industry, despite being the second-largest globally in terms of production, remains heavily dependent on imported raw materials, particularly coking coal. The cost of these inputs—often dictated by international cartels and price volatility—directly affects the competitiveness of Indian steel in global markets.

To counter this, the proposed framework advocates for collaborative sourcing. By pooling demand, Indian steelmakers can negotiate better deals for vital inputs like coking coal and manganese. Strategic partnerships are being explored with resource-rich nations such as Australia, Russia, and Mozambique, aiming to create a buffer against market shocks and logistical disruptions.

This model mirrors the success of global oil alliances, where buyer consortiums wield substantial influence. For India, such collaborations could not only stabilize costs but also secure long-term supply contracts—essential for sustained industrial growth.

Embracing Global Best Practices: Technology Transfer Agreements

India’s steel sector, while robust in scale, often lags behind in terms of technology. High energy consumption, outdated machinery, and limited automation continue to affect efficiency and environmental compliance. To bridge this gap, the framework encourages technology partnerships with advanced steelmaking nations like Germany, Italy, and Japan.

These collaborations are expected to focus on:

Green steel and decarbonization technologies

Automation and digital process integration

Lightweight and specialty steel production


By fostering technology transfer agreements, Indian companies can leapfrog into the next generation of manufacturing capabilities without bearing the full cost of innovation. Such access could significantly bolster India’s ability to meet global quality standards and ESG norms—both increasingly important in international trade.

Specialty Steel Focus under PLI 2.0

The introduction of a second phase of the Production-Linked Incentive (PLI) scheme centered around specialty steel is another pillar of this approach. Specialty steel, used in sectors like defense, automobiles, and high-speed rail, is currently a high-import commodity in India. The new PLI scheme aims to:

Promote domestic investment in this niche

Minimize capital intensity through incentives

Ensure projects become operational within two years


This not only reduces dependency on imports but also strengthens the value-added segment of India’s steel output—improving margins and export potential.

Tapping Global Markets: Targeting the Middle East and UAE

India exported around 13.5 million tonnes of finished steel in FY23, with Southeast Asia and the Middle East being major destinations. However, competition from countries like China, Japan, and South Korea remains intense. The new framework envisions joint exploration of export markets, particularly GCC countries and the UAE, where infrastructure booms and energy transition projects have increased demand for high-quality steel.

By offering a unified export strategy, Indian steelmakers can avoid undercutting each other and present a more compelling value proposition in terms of volume, reliability, and technology.

Institutionalizing Collaboration: Learning from Global Joint Ventures

India’s steel industry has already witnessed successful joint ventures such as:

JSW-POSCO: Aimed at building an integrated steel plant with modern technology

Tata-Nippon Steel: Focused on producing automotive-grade cold-rolled flat steel


These partnerships have demonstrated the benefits of shared knowledge, investment risk distribution, and market expansion. The upcoming framework could serve as an institutional mechanism to replicate these successes at scale.

Opportunities and Challenges

The proposal reflects India’s growing maturity in industrial policymaking—one that balances national interest with global integration. However, several challenges lie ahead:

Governance Mechanism: Ensuring transparent and equitable participation of private and public players.

Strategic Autonomy: Balancing foreign partnerships with national security and economic sovereignty.

Execution Hurdles: Joint procurement, shared R&D, and technology adoption require coordination and trust—historically weak areas in India’s industrial collaborations.


Yet, the upside potential is significant. By uniting steel giants under a common agenda, India can leverage economies of scale, reduce input costs, enhance technology diffusion, and improve global competitiveness.

Steel as a Strategic Asset

In an era where geopolitical tensions are redrawing trade routes and redefining supply chains, India’s strategy to foster steel joint ventures is both timely and transformative. It recognizes steel not just as a commodity, but as a strategic asset that underpins infrastructure, defense, and economic resilience.

The road ahead will require policy finesse, stakeholder coordination, and a long-term vision. But if implemented effectively, India’s unified steel framework could well become a model for other sectors looking to scale up through collaboration.