Auto sector: India moves to boost high-grade steel production to reduce import dependence; Kumaraswamy assures ‘all necessary support’

India is stepping up efforts to manufacture specialised high-grade steel for the automobile sector in order to cut down reliance on imports, Union minister for steel and heavy industries H D Kumaraswamy said on Thursday.Speaking at the annual convention of the Society of Indian Automobile Manufacturers (SIAM), the minister highlighted that the country has long depended on imported high-grade steel, a critical input for defence, strategic sectors and automotive components, reported news agency PTI. He added that the growing number of mega-projects across India has further pushed up demand for such advanced materials.Kumaraswamy noted that companies under the government’s Production-Linked Incentive (PLI) Auto Scheme have made significant progress. “As of March 2025, companies under the PLI auto scheme have already invested Rs 29,576 crore in capital, including setting up new production facilities and operating technology,” he said, adding that the scheme has created thousands of direct and indirect jobs in manufacturing, supply chain management and research and development.Reassuring automakers of full government support, Kumaraswamy said in a video message, “As a minister of steel, I would also like to take this opportunity to assure the Indian auto industry that the steel ministry will provide all necessary support to the auto sector, and would be a stronger enabler of Make In India… the steel industry is looking at developing specialised steel, which is required for certain components or parts in the auto sector, so that this sector need not be dependent on imports to meet their specific high-grade steel requirements.

”He underlined the role of innovation in driving change, stressing that while government policies provide the framework, “it is the industry, research institutions and startups that will bring innovation to life.” Kumaraswamy further said the ministry is working closely with automakers, technology providers and energy companies to help India meet its sustainability goals and emerge as a global exporter of sustainable mobility solutions.Calling on all stakeholders to move beyond gradual improvements, the minister urged them “to commit to bold steps, embrace innovation and make India a beacon of sustainable mobility for the world.”The PLI Scheme for Automobile and Auto Components, cleared by the Union Cabinet in September 2021 with an outlay of Rs 25,938 crore, has been instrumental in attracting investments in the sector.Few months ago, Kumaraswamy had discussed cooperation on high-grade steel and aluminium with UAE’s minister of economy Abdulla Bin Touq Al Marri in Dubai. The two sides explored opportunities under the India-UAE Comprehensive Economic Partnership Agreement (CEPA), with a focus on joint production and trade in materials vital for automobiles, mobility and high-end manufacturing. Kumaraswamy had proposed the creation of a joint working group to identify specific opportunities, streamline logistics and promote long-term collaboration.