India's fast-expanding steel industry is opening a significant new growth corridor for the domestic ferro-alloys sector, positioning the country to deepen its footprint in global markets, the Indian Ferro Alloy Producers' Association (IFAPA) said on Friday, 18 September 2026. The assessment was made at IFAPA's 6th International Ferro Alloys Conference in New Delhi, where the association laid out both the scale of the opportunity and the policy reforms it believes are essential to seize it.

Steel output and demand driving the opportunity

India's crude steel production reached approximately 165 million tonnes in calendar year 2025, marking a year-on-year rise of more than 10 per cent, according to IFAPA. Steel demand is projected to grow at roughly 7 per cent annually, underpinned by infrastructure spending, urbanisation, and manufacturing expansion.

The country has also set a target of around 300 million tonnes of steelmaking capacity by FY31, a goal that would substantially widen the market for ferro-alloy inputs — including manganese, chromium, and silicon — used to improve steel's strength, hardness, and corrosion resistance. Ferro alloys are critical to producing steel for infrastructure, automobiles, railways, defence, and specialised industrial applications.

Per-capita consumption milestone crossed

India has crossed what the association described as a landmark consumption threshold: per-capita steel use has climbed from around 24 kg in 1991 to approximately 109 kg in 2025. Having now exceeded the 100-kg mark, the next phase of demand growth could substantially expand requirements for both steel and the ferro alloys integral to its production, the IFAPA statement noted.

What IFAPA is asking the government

The association called for competitive power costs for energy-intensive ferro-alloy producers, along with a rationalisation of electricity-related charges and levies. Given that power constitutes a major share of operating costs in smelting and alloying, the industry argues that uncompetitive energy pricing is a structural handicap.

Manish Sarda, Chairman of IFAPA, said securing indigenous sources of critical raw materials must be a priority. 'Securing indigenous sources of critical raw materials must be a priority for Indian ferro-alloy producers to become globally competitive and support the vision of Aatmanirbhar Bharat. We need faster exploration and development of domestic manganese, chrome and other critical minerals,' he said.

Mine auctions: high bids, low output

Sarda also flagged a structural problem in the mineral auction framework. 'While several manganese ore mines have been auctioned at high premiums, many remain non-operational because the economics are often unviable. Auction frameworks should therefore encourage actual mine development and production, not simply the highest bid,' he said.

The association argued that commercially viable access to domestic mineral resources is critical to reducing import dependence and building a self-reliant ferro-alloys industry — directly aligned with the Centre's Aatmanirbhar Bharat agenda. This comes amid broader policy conversations around critical minerals security, with India having identified manganese and chromium as strategic inputs.

The road ahead

With the FY31 steelmaking capacity target still years away, industry stakeholders will be watching whether the government moves on power tariff rationalisation and mine development incentives in upcoming policy reviews. The trajectory of global steel demand — particularly from infrastructure-heavy economies — will also shape how quickly India can consolidate its position as a ferro-alloys export hub.