India's steel fabrication industry 2025
- sreeramspf
- Mar 3
- 2 min read
As of MARCH 2025, India's steel fabrication industry stands as a pivotal component of the nation's industrial framework, significantly contributing to economic growth and infrastructure development. The sector has witnessed robust expansion, driven by escalating demand across construction, automotive, and manufacturing industries. #steel #steelfabricaiton #market #price #fabricaiton
Here's the Year-over-Year Growth (Bar Chart) comparing 2023 → 2024 → 2025 across key steel fabrication segments. 🚀
Market Size and Growth: The Indian steel fabrication market is currently valued at approximately INR 1,200 crore (USD 14.48 million), experiencing a growth rate between 15% and 20%.
Dominance of Steel: Steel maintains a commanding presence in the metal fabrication market, accounting for about 68% of the market share in 2025 expecting .
Crude Steel Production: marking an 6-7% year-over-year growth and solidifying its position as the world's second-largest steel producer.
Steel Demand: India's steel with projections estimating an increase to 240 million metric tons by 2035, reflecting a compound annual growth rate (CAGR) of around 6%
Metal Machining: This segment leads the market with a 33% share in 2024, driven by the need for precision components in sectors like automotive and aerospace.
Metal Welding and Tubing: Emerging as the fastest-growing segment, it is expected to grow at approximately 7% during 2024-2029, fueled by infrastructure projects such as metro stations and industrial corridors
As we step into 2025, India's steel fabrication sector is poised for significant growth, driven by rapid industrialization, infrastructure expansion, and advancements in manufacturing technology. 🚀
📊 Market Forecast
Key Segment | 2024 (USD Billion) | 2025 (Projected) (USD Billion) | Growth Rate (%) |
Heavy Structural Fabrication | 12.5 | 14.8 | 18% |
Precision Steel Components | 8.2 | 9.7 | 15% |
Welding & Assembly Services | 6.4 | 7.5 | 17% |
CNC Machining & Custom Fabrication | 5.9 | 7.0 | 19% |
📈 Cost & Labor Comparison
Factor | India | China |
Labor Costs | Lower 🏭 (Competitive) | Higher 📈 (Rising wages) |
Raw Material Costs | Higher (Imports some steel) | Lower (Self-sufficient steel production) |
Technology Adoption | Moderate, growing fast ⚙️ | Highly automated 🤖 |
Lead Times | Longer (Developing infra) | Faster (Mature supply chains) |
✔️ India benefits from lower labor costs, making it a cost-effective alternative for global steel fabrication.✔️ China has a more mature supply chain, ensuring faster production & delivery but with higher labor costs.
Market Size & Growth
Metric | India (2025 Forecast) | China (2025 Forecast) |
Market Size (USD Billion) | $39 Billion | $280 Billion |
Annual Growth Rate (%) | 15-18% | 8-10% |
Global Market Share | ~5% | ~45% |
Steel Production (Million Tons) | 140 MT | 1,000+ MT |
Challenges and Opportunities = The domestic steel industry faces challenges from an influx of inexpensive Chinese steel imports, leading to reduced capacity utilization and potential layoffs among local producers.
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