Economy Overview
Global Economy
The global economy continued to witness volatility in 2024 navigating a complex landscape shaped by evolving geopolitical developments, shifting trade dynamics and monetary policy adjustments. Global GDP grew by 3.3% in 2024, maintaining a steady pace compared to 3.5% in 2023, despite global headwinds.
While geopolitical tensions—such as the ongoing Russia- Ukraine conflict, developments in the Middle East and regional border dynamics—introduced uncertainty, their economic impact was managed through timely responses. These included coordinated fiscal and monetary policy actions aimed at stabilising energy markets, sustaining supply chains and reinforcing investor confidence. Central banks maintained a vigilant stance on inflation, initially keeping interest rates elevated before gradually easing policy as price pressures moderated. Governments also provided calibrated fiscal support through measures such as infrastructure spending and targeted subsidies, contributing to broader economic stability.
Amid these dynamics, regional performance reflected a mixed but largely stable trend. Advanced economies grew by 1.8%, underpinned by robust labour markets and resilient domestic consumption, signalling a cautiously optimistic outlook going forward. The U.S. economy showed resilience, while the Eurozone faced continued pressure from high energy costs. In 2024, the US grew by 2.8%, but growth is expected to slow to 1.8% in 2025 and 1.7% in 2026 due to policy uncertainty and trade tensions. While the Euro Area expanded by 0.9% in 2024 and expected a modest recovery to 0.8% in 2025 and 1.2% in 2026.
Meanwhile, emerging markets and developing economies grew at a faster pace of 4.3%, led by strong performance in India and Southeast Asia. Chinas growth moderated as its property sector remained under strain and export demand weakened. However, fiscal stimulus measures, structural reforms, rising consumer demand and growing investments in infrastructure helped support momentum, keeping growth at 5.0% in 2024.
The pace is projected to ease to 4.0% in both 2025 and 2026 amid ongoing structural and external challenges.
. In response to these trade challenges, many countries turned their focus toward diversifying trade partnerships and strengthening domestic manufacturing. These efforts played a key role in helping economies adjust to the shifting dynamics of global trade.
Outlook
The global economy is expected to continue its recovery, with growth projected at 2.8% in 2025 and 3.0% in 2026, despite lingering uncertainties across regions. Advanced economies are likely to see moderate growth around 1.4% in 2025 and 1.5% in 2026, supported by steady domestic demand and cautious policy adjustments. In contrast, emerging markets are expected to grow at a faster pace, with forecasts of 3.7% in 2025 and 3.9% in 2026, driven by ongoing structural reforms, favourable demographics and expanding consumer markets. According to the Short-Term Energy Outlook (STEO) report, the average Brent crude oil price stood at USD 81 per barrel in 2024. It is projected to moderate to USD 69 per barrel in 2025 and further to USD 58 per barrel in 2026, supported by improved supply dynamics and a more stable geopolitical environment, contributing to a balanced and resilient global energy market.
In the U.S., the Federal Reserve is projected to bring down the federal funds rate to 4% by 2025, eventually reaching 2.9% by 2028. The European Central Bank is also expected to lower rates by around 100 basis points in 2025, bringing them to 2% by mid-year. Europe is undergoing a strategic transformation marked by increased emphasis on defence and infrastructure investment. With initiatives at both national and EU levels, the region aims to enhance security, modernise logistics and build long-term strategic strength in response to shifting geopolitical dynamics and the pursuit of greater self-reliance. These efforts, which include fiscal reforms, joint defence procurement and improved military mobility, are expected to support economic activity, stimulate industrial growth and strengthen regional stability over the medium term. Meanwhile, Japan is anticipated to gradually raise interest rates toward a neutral level of 1.5% over the medium term.
Trade tensions are expected to continue to add pressure, especially with the imposition of U.S. tariffs, which have made imports costlier, pushed up inflation and dampened consumer spending. In turn, retaliatory tariffs from other countries have heightened global trade frictions and disrupted supply chains. Even with these ongoing challenges, the longer-term outlook for the global economy remains positive. With continued innovation, smart policy choices and stronger collaboration between countries, the global economy is well-positioned to navigate challenges and promote more inclusive, sustainable growth.
Source:
https://www.imf.org/en/Publications/WEO/Issues/2025/04/22/world- economic-outlook- april-2025
https://www.iea.org/reports/global-energy-review-2025/global-trends
Indian Economy
India
Over the past decade, India has experienced a major economic transformation driven by structural reforms, forward-looking policies and strong political commitment. Key achievements include high GDP growth, record exports, a digital payments revolution and widespread financial inclusion. Despite a challenging global environment, India demonstrated notable resilience, leveraging its domestic strengths and reform-oriented policies to sustain stable economic growth.
It continues to be among the worlds fastest-growing major economies. India registered a robust GDP growth of 9.2% in FY24, driven by a favorable base effect and strong domestic fundamentals. While growth 6.5% in FY25 due to the higher base, it still reflects solid economic momentum, underpinned by ongoing structural reforms, increased infrastructure spending, and the continued strength of the services sector.
India: Outlook
The Union Budget 2025-26 places a strong emphasis on railways and other public amenities, along with strengthening the mineral sector, with targeted measures to improve transport, logistics and promote domestic mineral exploration and processing. Household consumption is expected to stay strong due to tax relief, while fixed investment is set to rise, backed by improved capacity utilisation and continued government spending. The RBI forecasts 6.5% GDP growth for FY26, supported by initiatives like “Make in India” and structural reforms.
On the external front, India and the US are working on the finalisation of an interim trade agreement, signalling a positive shift in economic relations. The deal is expected to avoid steep tariffs, open up key sectors like industrial goods and agri-tech and may even incorporate initial terms for genetically modified commodities—all seen as “early wins” that build momentum towards a more comprehensive pact. Additionally, China has recently imposed informal trade barriers by delaying exports of key inputs like rare-earth magnets and fertilizers.
In response, India is working to diversify supply chains and strengthen domestic production, reinforcing the Budgets emphasis on self-reliance and long-term economic stability.
Indias total exports surged to a record USD 824.9 billion in FY25, registering a 6.01% growth over the previous years figure of USD 778.1 billion. Services exports continued to drive this growth momentum, reaching an all-time high of USD 387.5 billion, a strong 13.6% increase from USD 341.1 billion in FY24. The fiscal deficit for FY25 is estimated at 4.8%, with a target to reduce it to 4.4% in FY26. At the same time, foreign exchange reserves remained strong, at USD 697.9 billion. Additionally, merchandise exports excluding petroleum products rose to a record USD 374.1 billion, marking a 6.0% rise from USD 352.9 billion in the previous year—the highest annual non-petroleum merchandise export performance to date. With rising FDI, expanding trade and innovation-led sectors, India has emerged as a key player shaping the global economy. India has surpassed Japan to become the fourth-largest economy in the world by GDP, highlighting its growing significance on the global economic stage. As India moves toward becoming one of the worlds top three economies, its consistent progress over the past decade and beyond signals that this economic rise is not a passing phase, but a long-term structural shift.
Source:
https://www.pib.gov.in/PressNoteDetails. aspx?NoteId=154660&ModuleId=3
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2079986 https://mospi.gov.in/sites/default/files/press release/NAD PR 30mav2025.pdf
https://www.pib.gov.in/PressNoteDetails. aspx?NoteId=154840&ModuleId=3
Industry Overview
Global Stainless-Steel Industry
Stainless steel is a valuable material widely used for its strong resistance to corrosion, long-lasting durability and smooth finish, owing to its high chromium content and other elements like nickel and molybdenum. Over the last 40 years, the stainless-steel sector has experienced remarkable expansion on a global scale. It has outpaced other metals like carbon steel, aluminium and copper, driven by rising demand. Between 1980 and 2023, the stainless steel market recorded a higher growth rate of 5.10%, outpacing other metal markets such as carbon steel, aluminium and copper, primarily due to rising demand from diverse end-use sectors. This strong growth has, in turn, positively impacted the nickel and chromium markets, given their close linkage to stainless steel production.
The stainless steel melt shop production increased by 7% in 2024 as compared to 2023, reaching a total of 62.6 million tonnes (MT). This growth highlights the continued strength and global demand for stainless steel across all major regions. Global stainless-steel production continued its upward trajectory in 2024, with key regions recording notable growth. China, the worlds largest producer, delivered a particularly strong performance, increasing its output by 7.5% to 39.4 MT. Europe registered a modest growth of 1.5%, producing 6.1 MT in 2024, reflecting relative stability in the regions output. The United States saw a strong increase of 6.9%, with total production reaching 1.95 MT. Meanwhile, Asia (excluding China and South Korea) recorded a 6.4% rise, producing 7.3 MT for the year. Other regions, which include areas such as Latin America, the Middle East and Africa, experienced the highest growth rate of 9.2%, with total output increasing to 7.8 MT.
Stainless steel melt shop steel production [MT]
Region |
CY2023 | CY2024 | (YOY % change) |
| Europe | 6.00 | 6.09 | 1.5% |
| USA | 1.82 | 1.95 | 6.9% |
| China | 36.68 | 39.44 | 7.5% |
| Asia w/o China and S. Korea | 6.88 | 7.32 | 6.4% |
| Others | 7.16 | 7.82 | 9.2% |
| Total | 58.54 | 62.62 | 7.0% |
Source: world stainless
The growth in global stainless steel market expected to driven by a mix of factors more urban development, rising infrastructure and construction projects and increasing use in industries like automotive, LNG and renewable energy. Theres also a growing shift towards more sustainable practices, with companies focusing on recycling and scrap based production methods. North America currently holds the largest share of the market, but Asia-Pacific is growing the fastest, supported by strong demand in countries like China, India and Japan.
On the product side, flat stainless steel, especially cold- rolled types, continues to lead the market. Among the different grades, the 300-series remains the most widely used, while duplex grades are becoming more popular. The construction sector remains the dominant end-use segment for stainless steel, while the automotive industry is emerging as a significant growth driver, demonstrating accelerated expansion and increasing consumption. Key stainless steel market players are focusing on advanced technologies and greener processes to stay ahead. While the market outlook is positive, companies still face challenges such as fluctuating raw material prices, supply chain issues and increasing regulatory requirements. The United States has increased tariffs on steel and aluminium imports to 50%, under Section 232 of the Trade Expansion Act, which permits such measures on national security grounds. While this move aims to strengthen domestic manufacturing, it may encourage global stainless steel producers to explore new markets, diversify their export strategies and enhance competitiveness through innovation and value-added offerings.
Source:
https://worldstainless.org/media/press-releases/stainless-steel-melt-shop-production-increases-by-7-in-2024/
html?file=https%3A%2F%2Fworldstainless.org%2Fwp-content%2F uploads%2F2025%2F02%2Fstainless steel markets october 2024. pdf
https://www.monevcontrol.com/world/trump-s-50-steel-and-aluminium-tariffs-how-india-stands-to-lose-billions-article-13086273.html
Indian Stainless Steel Industry
Indias stainless-steel market is being driven by rising demand for corrosion-resistant materials across a wide range of sectors, including construction, automotive and manufacturing. In addition, increasing applications in railway, transport and process industries—along with emerging sectors such as green hydrogen, nuclear energy, ethanol, water treatment, marine, space and defence—are further contributing to market expansion. The countrys sustained focus on infrastructure development, including the construction of road-over-bridges (ROBs), flyovers and foot-over-bridges (FOBs), is also playing a vital role in supporting the upward trajectory of the stainless-steel market.
The Indian Stainless Steel Development Association (ISSDA) reported an 8% growth in stainless steel consumption in FY25, reaching 4.85 MT(Prov.), marking robust growth despite macroeconomic and political challenges. The association expressed confidence in the markets growth prospects, stating that despite these challenges, the stainless steel market in India remains among the fastest-growing globally.
Given the challenges in the Indian stainless steel industry bodies like the Indian Stainless Steel Development Association (ISSDA) have called for a dedicated stainless- steel policy that addresses sector-specific issues such as raw material security, capacity utilisation, fair competition and strategic deployment in critical sectors like infrastructure, renewable energy and electric mobility. Such a focused approach could help reduce import dependency, strengthen domestic manufacturing and position India as a competitive force in the global stainless-steel landscape.
As per ISSDA, Indias per capita consumption of stainless steel has witnessed a notable rise - from 2.25 kg in FY19 to 3.1 kg in FY24 - reflecting increased adoption across key sectors such as infrastructure, processing industries, and railways. This upward trend is largely driven by the metals inherent advantages, including superior sustainability, corrosion resistance, durability, and structural strength.
Over the past two decades, the domestic demand for stainless steel has become increasingly diversified. However, per capita consumption in India remains below the global average of 6.5 kg, signalling substantial headroom for growth. The country currently possesses an installed production capacity of 7.5 million tonnes, with the ability to manufacture a broad range of stainless steel grades conforming to both national and international standards.
Despite this robust capacity, the industry continues to face challenges, particularly from the dumping of substandard stainless steel imports, primarily from China. Such practices have negatively impacted domestic manufacturers, contributing to a relatively low capacity utilisation rate of around 60%. To address this imbalance and enable Indian producers to operate at optimal levels, policy-level support and corrective trade measures are imperative. Such interventions would further fortify Indias standing in the global stainless steel value chain.
Source:
https://www.ibef.org/news/india-s-stainless-steel-demand-to-grow-7-8-annuallv-over-two-to-three-vears-issda
Sector-Specific Demand
Stainless steel demand in India is growing steadily, supported by its increasing use in key sectors such as consumer goods, transportation, infrastructure, renewable energy, healthcare, defence and various process industries. India is currently the second-largest consumer and third-largest producer of stainless steel. It plays a crucial role in advancing the countrys goal of becoming a global manufacturing leader. Major industries driving stainless steel demand are being discussed as follows:
Automotive, Railways and Transportation (ART)
The ART sector, including major roadways, railways and the automotive industry, has been a key driver of stainless- steel demand in India. Indias rapid transformation in transport infrastructure, including roads, railways, ports, metro systems and civil aviation is significantly boosting demand for stainless steel. Stainless steel is widely used in the production of various components in conventional, hybrid and electric vehicles, including exhaust systems, heat exchangers, pipes and tubes, fasteners, transmission systems and select body panel parts.
In the railways sector, Indian Railways remains a major consumer of stainless steel. The growing use of stainless steel in wagons, coaches and infrastructure, along with plans for station modernisation and dedicated freight corridors (DFCs), is likely to fuel further demand. The increase in railway capital expenditure-targeted towards new lines, track doubling and the implementation of the Kavach safety system-is expected to provide a strong impetus to stainless steel consumption in this sector.
These developments present strong growth opportunities for the stainless-steel industry as it becomes an integral part of Indias vision for a future-ready, efficient and environmentally sustainable transport network.
As of October 2024, the Indian stainless steel industry stands to gain significantly from the countrys robust infrastructure push under initiatives such as PM GatiShakti, Bharatmala etc. The 60% expansion in the National Highway network to 1,46,204 km as of March 31, 2025, along with a threefold increase in construction pace to 34 km per day, is driving consistent demand for high- quality, durable materials, especially stainless steel in bridges, guardrails, structural supports and signage
Source:
https://www.pib.gov.in/PressNoteDetails.
aspx?id=154624&NoteId=154624&ModuleId=3
https://www.pib.gov.in/PressReleasePage.aspx?PRID=1966347
Automotive:
The Indian automotive industrys robust growth continues to fuel the demand for stainless steel. In FY25, the automobile sector recorded a strong 7.3% rise in domestic sales, mirrored by strong consumer sentiment and increasing global interest in vehicles manufactured in India. Indias total automobile production reached 31.03 million units in FY25, marking a strong recovery and growth trend across all vehicle categories.
Commercial Vehicle (CV), showed signs of revival toward the year-end, aided by infrastructure upgrades and fleet modernisation, which require high-grade stainless steel for chassis, body structures and emission control systems. With the growing emphasis on fuel efficiency in conventional vehicles and extended range in electric vehicles, automakers are increasingly adopting stainless steel to reduce vehicle weight, leveraging its high strength-to-weight ratio. Consequently, the anticipated rise in automobile production over the next five years is expected to boost demand for stainless steel.
The stainless steel industry is poised to benefit significantly from Indias evolving automotive landscape. Growth in the automotive sector, led by rising demand for small cars, compact utility vehicles (UVs) and two-wheelers, is driving greater consumption of stainless steel. Factors such as increasing middle-class incomes, a young population, rapid urbanisation and improved access to financing are boosting vehicle sales, while policy initiatives like the Automotive Mission Plan 2016-2026 and the vehicle scrappage policy provide further momentum.
From the industrys perspective, two-wheelers and passenger vehicles continue to account for the bulk of stainless steel demand, contributing 85-90% of the sectors consumption. The application of stainless steel has steadily expanded to include critical components such as pump bodies, heat shields, wipers, airbag containers, belt springs and hose clamps. With heightened safety standards, the intensity of stainless steel usage per vehicle is expected to grow further.
Indias accelerated push towards electric mobility presents another strong growth avenue. Stainless steel is emerging as a key material in the manufacture of electric and hybrid vehicles, particularly for battery enclosures, chassis structures and other high-performance components.
Its high strength-to-weight ratio supports lightweight vehicle design without compromising safety, thereby extending driving ranges. Additionally, the industrys inherent recyclability makes stainless steel a sustainable choice, aligning well with the automotive sectors green manufacturing goals and environmental commitments.
Beyond sustainability, JSL played a key role in national infrastructure and clean mobility. It supplied stainless steel for Indias first underwater metro line in Kolkata and partnered with JBM Auto to support the production of over 500 lightweight electric buses. The Company also collaborated with CJ Darcl Logistics to develop high- strength stainless steel containers for the efficient transport of goods like batteries, rubber and polymers. Additionally,
JSL became the first Indian stainless-steel maker to secure raw material reserves overseas—an important move considering Indias lack of nickel resources.
Source:
https://www.siam.in/pressrelease-details.
aspx?mpgid=48&pgidtrail=50&pid=579
https://www.ey.com/en in/technical/alerts-hub/2025/02/budget- 2025-auto-sector
CRISIL Industry Report
Railways
In 2024, Indian Railways undertook extensive infrastructure upgrades and operational enhancements, opening up new avenues for the Indian stainless steel industry.
The rollout of 136 Vande Bharat trains in 2024 and the commissioning of the Namo Bharat Rapid Rail provided a major boost to the usage of stainless steel in coach shells, interiors, sanitary systems and underframes ensuring both longevity and passenger safety. Likewise, Indian Railways freight operations, which recorded 1,473 MT in cargo movement by 2024, leveraged stainless steel for wagons used in food-grade, chemical and bulk transport.
The expansion of the railway network, with 68 Vande Bharat trains has been operational, over 45,000 route kilometres electrified and safety measures such as Kavach being deployed, reflects rising demand for stainless steel in coaches, overhead equipment and safety infrastructure.
Stainless steel is increasingly being used in the production of wagons and coaches, contributing to enhanced durability, safety and lifecycle efficiency in railway operations. Also, the stainless steel industry is expected to benefit significantly from the development of 100 GatiShakti multimodal cargo terminals by 2025. These terminals are projected to handle over 1,500 million tonnes of cargo annually, improving logistics efficiency and supporting overall economic growth. Such large-scale infrastructure projects present considerable opportunities for increased stainless steel consumption, particularly in structural applications and cargo-handling infrastructure.
The prestigious Mumbai-Ahmedabad high-speed bullet train project is another major driver of stainless steel demand.
Indian Railways has specified the use of austenitic stainless steel for the car bodies of these high-speed trains due to its strength, corrosion resistance and longevity. This move highlights the growing preference for stainless steel in the countrys premium and safety-critical transportation initiatives.
Under the National Rail Plan (NRP) 2030, Indian Railways is focused on building a future-ready network through the expansion of coach, wagon and train production, backed by major investments in technology and infrastructure. This initiative is expected to significantly increase the use of stainless steel, particularly in modern and safer rolling stock components. The stainless steel industry is poised to play a key role in supporting this transformation, as the material is integral to achieving the goals of improved safety, efficiency and durability.
Rolling stock upgrades present a major growth opportunity for stainless steel. Indian Railways had planned to produce 17,500 non-AC general and sleeper coaches to enhance affordable travel capacity. The newly introduced Amrit Bharat trains, which aim to deliver advanced features at lower costs, further expand this demand. The transition from older ICF coaches to LHB coaches, which are built with stainless steel, is being carried out in a phased manner. Over the next five years, all remaining ICF coaches will be replaced, which will drive substantial stainless steel requirement.
The upcoming Vande Bharat sleeper trains also contribute to this growing demand. The first prototype is under testing, with 50 sleeper rakes planned for production in FY26 and FY27. Additionally, 200 more rakes are expected to be manufactured in collaboration with technology partners.
Rapid rail systems like Namo Bharat, designed for short intercity and suburban travel, incorporate stainless steelintensive designs based on the Vande Bharat model.
In the next 5-10 years, about 10,000 non-AC coaches are expected to be manufactured, including over 5,300 general coaches. This, combined with the planned expansion of the Vande Bharat fleet to 800 trains by 2030 (including long-distance sleeper variants), ensures sustained stainless steel demand over the coming decade.
In the freight segment, Indian Railways aims to raise the modal share of freight transport to 45% by 2030. This will require a sharp increase in the production of freight wagons, including specialised wagons for different commodities. The development of dedicated freight corridors (DFCs), such as the Eastern and Western routes, will further support this growth. These corridors will utilise advanced wagons capable of carrying heavier loads, which will continue to rely heavily on stainless steel for their strength and performance.
Stainless steel demand is also rising from the redevelopment of railway stations. Each station, on average, uses between 1,500 and 2,000 metric tonnes of stainless steel. With redevelopment planned for approximately 1,275 stations and potential application across nearly 7,700 stations, the long-term usage of stainless steel in station infrastructure remains strong.
JSL has supplied high-strength tempered 301L grade austenitic stainless steel for the newly unveiled Vande Bharat sleeper coaches, enhancing safety, durability and sustainability. These coaches are meant for longdistance overnight travel and are expected to be more energy-efficient because of their reduced weight. The stainless steel used offers superior resistance to corrosion, fire and crash impacts, reducing life-cycle costs and supporting the sustainability goals of Indian Railways.
JSL, a key supplier for various prestigious railway and metro projects, continues to play a pivotal role in modernising Indias rail infrastructure while maintaining global quality standards. The Vande Bharat sleeper train marks a major step forward in modernising long-distance rail travel in India and the stainless steel industry is proud to support this important initiative. The use of tempered 301L austenitic stainless steel helps reduce the weight of each coach by around 2 tonnes, improving energy efficiency and lowering carbon emissions. This supports the broader goal of making rail transport more sustainable. With the ability to reach speeds of up to 160 km/h, the new coaches are designed to provide a better travel experience with improved comfort, safety and modern features.
Transport
Stainless steel is increasingly being used in rural and transport infrastructure due to its durability and corrosion resistance. The expansion of rural connectivity under PMGSY and the adoption of green technologies in road construction are opening new markets for stainless steel-based components. Additionally, rising investments in aviation, port infrastructure, marine applications and emerging sectors like green hydrogen are creating fresh opportunities for stainless steel across critical infrastructure and sustainable transport systems.
Source
https://www.pib.gov.in/PressReleaseIframePage.
aspx?PRID=2088668
https://www.pib.gov.in/PressNoteDetails.
aspx?id=154624&NoteId=154624&ModuleId=3
https://www.pib.gov.in/PressReleaseIframePage.
aspx?PRID=2098714
https://www.iindalstainless.com/press-releases/iindal-stainless-supplies-stainless-steel-for-vande-bharat-sleeper-train/
Airport Infrastructure
The stainless steel industry has seen growing demand from the airport infrastructure sector in India, where the materials strength, longevity and visual appeal make it a preferred choice. Stainless steel is extensively used in the construction of terminals, facades, roofing and other essential components of airports. Its resistance to corrosion is especially beneficial in coastal and high- humidity regions, helping ensure long-lasting performance with minimal maintenance. At the same time, its sleek and modern finish enhances the overall look of airport structures, creating a more welcoming experience for travellers.
From a structural standpoint, stainless steel continues to play a key role in enhancing both safety and durability. It is widely used in critical applications such as handrails, escalators and elevators, where mechanical strength and user safety are essential. The material is also commonly used in airport interiors—including seating, counters and wall cladding—thanks to its ability to retain its finish despite constant use. Its hygienic properties further strengthen its relevance in high-traffic areas such as food courts and passenger waiting lounges, where cleanliness and ease of maintenance are top priorities.
Stainless steel also supports the sustainability goals of airport infrastructure projects. Being 100% recyclable, it helps reduce the environmental impact of construction and contributes to circular economy practices. Its excellent strength-to-weight ratio enables more efficient designs, reducing the need for additional structural support and ultimately lowering material usage and project costs.
As India continues to invest in modernising its airport facilities, stainless steel remains an integral material — enhancing operational efficiency, safety and aesthetics while supporting long-term sustainability objectives.
Looking ahead, India has set an ambitious target to develop 50 new airports over the next five years and establish connectivity to 120 new destinations within the coming decade. With this rapid infrastructure growth, the use of stainless steel is expected to rise further across areas such as runway structures, aircraft hangars, air cargo terminals and Maintenance, Repair and Overhaul (MRO) facilities. Aligned with the governments focus on safety, passenger experience and global integration, stainless steel remains indispensable in realising Indias vision of becoming a world-class aviation hub by 2047.
Source
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2123537
Building and Construction sector
In India, the real estate sector ranks as the second-largest employment generator, following agriculture. It has also been projected to attract increasing investment from nonresident Indians (NRIs) in both the short and long term. Among preferred destinations, Bengaluru leads as the top choice for NRI property investment, followed by Ahmedabad, Pune, Chennai, Goa, Delhi, and Dehradun. The real estate sector is poised for steady growth, fueled by accelerating urbanisation, expansion of the rental market, and rising property prices.
The sector is witnessing a surge in private investment, driven by greater transparency and attractive returns.
The Indian building and construction sector is undergoing a transformative phase under Mission 2025, aiming to become the worlds third-largest construction market. In FY25, the Indian building and construction sector continued to play a vital role in driving demand for the stainless steel industry, supporting a steady revenue growth trajectory of 8 -10%. This deceleration was primarily attributed to the impact of the Model Code of Conduct, an elongated monsoon season and the shift to milestone-based billing. However, execution momentum has been steadily improved, supported by strong underlying infrastructure demand and healthy project pipelines in segments beyond roads .
The stainless steel industry sees strong growth potential in the increasing adoption of stainless steel rebars for infrastructure projects, particularly in coastal and high- humidity regions. With their superior corrosion resistance and durability, stainless steel rebars offer a reliable solution for extending the lifespan of roads, bridges and other critical structures exposed to harsh environmental conditions.
Their use is especially important within 30 kilometres of the coastline, where traditional materials often suffer from rapid deterioration due to salt-laden air and moisture. By replacing conventional steel with stainless steel rebars in such areas, construction quality and safety are significantly enhanced while long-term maintenance costs are reduced. This shift aligns well with the broader goals of building sustainable, resilient infrastructure and reflects the vital role of stainless steel in supporting national development priorities.
For the stainless steel industry, FY25 offered significant structural opportunities across infrastructure sub-segments such as metro rail, urban transport, water supply and sanitation. The adoption of stainless steel in metro stations, foot-over-bridges, public utility structures and water pipelines saw steady growth during the year. The installation of 1,790 lifts and 1,602 escalators also indicates increased use of stainless steel in public mobility and accessibility solutions. As of a total of 41,929 wagons were produced, surpassing the 37,650 units manufactured in 2023-24.
Although road-focused construction players witnessed pressure due to muted order inflows in that segment, other areas such as sewage treatment, metro projects and urban development sustained momentum, offering diverse applications for stainless steel in architectural cladding, street furniture and load-bearing frameworks.
The sectors evolving emphasis on quality, safety and sustainability further reinforced stainless steels role in long-lasting, high-performance infrastructure solutions. As the sector moves towards recovery and broader adoption of advanced materials, FY25 reflected stainless steels growing contribution to Indias infrastructure transformation.
The governments ambitious urban development programmes are significantly boosting demand for modern, durable materials like stainless steel. Under the Smart Cities Mission, 7,401 projects worth INR 1,54,351 crore have been completed as of February 1, 2025, reflecting large-scale urban infrastructure development where corrosion-resistant and sustainable materials are critical as of February 1, 2025. The Swachh Bharat Mission - Urban 2.0 has also driven a 97% increase in urban waste collection and a remarkable jump in waste processing from 18% in 2014-15 to 78% in 2024-25, necessitating durable and hygienic infrastructure solutions, areas where stainless steel offers clear advantages. Moreover, the surge in affordable housing, with approvals rising from 13.46 lakh units in 2004-14 to 118.64 lakh under PMAY-U during 2015-24 and completions increasing 11-fold to 88.32 lakh units, signals a robust pipeline for stainless steel applications in plumbing, roofing, facades and modular construction systems.
Source
https://www.icra.in/CommonService/QpenMediaS3?Kev=511d8e88-7875-4c40-b4ad-c9a65d7a499e
https://constructiontimes.co.in/mission-2025-indian-construction-industry
https://www.credenceresearch.com/report/india-building-construction-market
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2098788
https://www.pib.gov.in/PressReleasePage.aspx?PRID=2118737
Process Industries
The process industry segment contributes significantly to Indias total stainless steel demand, with the food processing and pharmaceutical sectors emerging as the primary end-use industries within this segment. In FY24, growing awareness of the advantages of stainless steel continued to drive its adoption across the process industry. Key enablers include the governments target of achieving 280 GW of solar capacity by 2030, supported by an INR 19,500 crore allocation under the PLI scheme for solar module manufacturing, as well as the launch of four pilot projects focused on coal gasification and conversion of coal into chemicals. Additionally, efforts to improve scientific waste management through 100% mechanical desludging and the transition from manholes to machine-holes are expected to support long-term stainless steel demand in the process industry. The implementation of the Ken-Betwa Link Project, aimed at irrigating 910,000 hectares of farmland and providing drinking water to 6.2 million people, will further contribute to this demand.
Industrial Machinery and Components:
The Indian machine components market reached a size of USD 228.80 million in 2024 and is projected to grow to USD 334.50 million by 2033, reflecting a steady CAGR of 3.90% during 2025-2033. This upward trajectory presents a favourable outlook for the stainless steel industry, given its critical role in delivering precision-engineered, high- performance components required across key sectors such as automotive, aerospace, industrial machinery and construction. The National Manufacturing Mission and upcoming Centres of Excellence for Skilling are expected to boost demand and enhance capabilities in stainless steel manufacturing for both domestic and global markets.
The transition towards import substitution, driven by initiatives like ‘Make in India and the Production Linked Incentive (PLI) schemes, is accelerating the adoption of domestically produced components. The shift from mass production to specialised, high-precision engineering is also boosting the usage of stainless steel in applications requiring tight tolerances, high fatigue resistance and superior durability, particularly in aerospace, electric vehicles and medical devices.
The Indian construction equipment industry recorded a modest 3% growth in FY25, largely driven by a robust 10% increase in exports, despite muted domestic demand. This resilience and export momentum underscore the global competitiveness of Indian manufacturing and signal continued infrastructure expansion, factors that bode well for the stainless steel industry. With nearly 98% of equipment sold domestically being produced in India, the need for high- quality, durable materials is rising, especially in earthmoving, material handling and concrete equipment segments where stainless steel offers several advantages compared to other metals. The domestic market remained subdued due to factors such as elections, rising input costs, stricter emission norms and delays in project execution. These challenges highlight the growing importance of value-engineered materials like stainless steel, which can help meet changing design standards and regulatory requirements more efficiently.
Looking ahead, the stainless steel industry stands to benefit from anticipated growth in infrastructure investment and increased focus on export-ready manufacturing.
With OEMs broadening their supplier base within India to reduce lead times and ensure quality, the stainless steel industry is playing a pivotal role in strengthening this localised ecosystem. By aligning with the evolving precision and performance requirements of the Indian machine components market, stainless steel producers are positioned to move up the value chain and become strategic partners in Indias industrial transformation.
Source:
https://www.imarcgroup.com/india-machine-components-market https://www.i-cema.in/wp-content/uploads/2025/06/ICEMA-Press- Release Annual-Sales-Report-FY25 28Mav25.pdf
Oil & Gas and Petrochemicals Sector
Stainless steels unique properties make it the material of choice across upstream, midstream, and downstream operations in the oil & gas industry. One of stainless steels key advantages is its natural resistance to corrosion, even under continuous exposure to corrosive substances such as saltwater, hydrogen sulfide, and hydrocarbons.
In addition to general corrosion resistance, stainless steel provides excellent protection against stress corrosion cracking and galvanic corrosion, common challenges in oilfield applications. Its ability to maintain integrity under high pressures and extreme temperatures makes it ideal for deepwater wells, high-pressure pipelines, and refining equipment.
The refining and extraction processes in the oil and gas industry involve handling a wide range of highly corrosive chemicals under extreme pressure and temperature conditions. This makes material selection critical for ensuring safety, efficiency, and longevity. Stainless steel, with its minimum 10.5% chromium content, forms a passive chromium oxide layer that offers superior corrosion resistance, essential for operations in aggressive environments, including marine settings. Its robustness and versatility make it ideal for key components such as separator vessels, pumps, flow lines, pipelines, heat exchangers, and storage tanks. By withstanding both mechanical and chemical stress, stainless steel enhances operational reliability and sustainability across the oil and gas value chain.
The oil & gas and petrochemicals sector is estimated to contribute approximately 45-50% of the total stainless steel demand within the process industry. Stainless steel consumption in this segment is closely linked to investment activity, which is primarily influenced by the rising demand for oil, gas and petrochemical products across various end-use industries.
Pharma Sector
The pharmaceutical industry is estimated to account for 25-30% of the total stainless steel demand within the process industries. India has emerged as a leading and fast-growing global hub for pharmaceutical manufacturing and is the worlds largest supplier of generic medicines. The industry comprises a vast network of approximately 3,000 drug companies and around 10,500 manufacturing units, driving significant stainless steel usage across production, storage and processing operations. These manufacturing units require equipment made from materials that do not react with the active substances used in the production process. As a result, stainless steel is widely preferred for such applications due to its chemical inertness and durability. In the stainless steel industry, Grades 304 and 316 are the two most commonly used types. Grade 316 offers higher resistance to acids and alkalis compared to Grade 304, making it suitable for equipment that comes into direct contact with chemicals. Grade 304 is generally used for other less chemically exposed applications. In the pharmaceutical equipment industry, around 80-90% of stainless steel is used in machinery and equipment involved in medicine production. The remaining share is used in packaging machinery and utility systems.
Renewable Energy Generation Sector
The stainless steel industry stands to benefit from upcoming developments in the energy sector, particularly with several major nuclear power projects under construction in Tamil Nadu (Kalpakkam, Kudankulam), Gujarat (Kakrapar) and planned extensions at Kudankulam. These projects are expected to be commissioned over the next five years, creating consistent demand for stainless steel in critical reactor components, piping systems and safety equipment, where corrosion resistance and strength are essential.
At the same time, the growth in renewable energy, especially solar power, is set to lead power generation investments over the next five years. This shift toward clean energy is supported by capex led infrastructure, a strong economic outlook and the ongoing expansion of transmission and distribution (T&D) networks. These developments will enhance power availability and reliability, while also opening up further opportunities for stainless steel in supporting structures, enclosures and electrical infrastructure due to its durability and low maintenance needs.
From a stainless steel standpoint, this transition towards clean energy presents significant opportunities. Stainless steel will continue to play a critical role across multiple renewable energy applications. Key areas of usage include solar mounting structures, wind turbine components, hydrogen production and transportation infrastructure and advanced energy storage systems. Additionally, ongoing power sector reforms by the central government—particularly those aimed at strengthening the financial and operational performance of state distribution utilities—are expected to spur demand.
Nuclear Power Plants
Stainless steel plays a critical role in Indias nuclear power sector, owing to its exceptional resistance to radiation, high temperatures and corrosive environments. It is extensively used in the construction of reactor pressure vessels, which must withstand extreme pressure, temperature and radiation over long operational lifespans. Stainless steel is also integral to spent fuel storage casks, offering robust containment and effective radiation shielding to ensure safe long-term storage. In advanced nuclear applications, such as fusion reactors, stainless steel is employed in magnetic coils and structural components, providing the necessary thermal and mechanical stability
Nuclear power plants require substantial quantities of stainless steel, underlining its critical role in nuclear infrastructure. As India moves forward with its plans to significantly expand its nuclear power generation capacity over the coming years, the demand for stainless steel is set to increase notably.
The material is essential in a wide range of applications, including supercritical boilers, reactor vessels, high- pressure piping systems, storage tanks and chimneys.
Aerospace and Defence
Indias aerospace and defence sector, projected to grow from USD 27.1 billion in 2024 to USD 54.4 billion by 2033 at a CAGR of 6.99%, presents strong growth potential for stainless steel manufacturers. The sectors focus on indigenisation, increased defence budgets and modernisation of the armed forces is accelerating the demand for high-grade, corrosion- resistant and heat-resistant stainless steel components used in aircraft, naval vessels, spacecraft and weapon systems.
The establishment of technologically advanced manufacturing facilities and joint ventures to meet global quality standards further drives demand for precision-engineered stainless steel parts. Additionally, the rapid growth of Indias space programme and commercialisation of aerospace manufacturing are expected to significantly increase the need for specialised stainless steel grades in launch vehicles and satellite structures.
Jindal Stainless Limited (JSL), has developed and supplied 3 mm special alloy steel sheets for the Supersonic Missile- Assisted Release of Torpedo (SMART) system, designed to enhance the Indian Navys anti-submarine warfare capabilities. These specialised sheets, developed by JSLs Defence and Aerospace vertical at its Hisar facility, are engineered to withstand high pressure and temperature during flight. The material was supplied to the Defence Research and Development Organisation (DRDO), which recently conducted a successful test of the system off the coast of Odisha.
JSL has a strong track record of contributing to key defence and space projects for DRDO and the Indian Space Research Organisation (ISRO), including Chandrayaan,
Polar Satellite Launch Vehicle (PSLV), Geosynchronous Satellite Launch Vehicle Mark III (GSLV Mk3), nuclear submarine missile systems and other missile programmes.
The company holds the AS 9100D certification, a global standard for quality management in aviation, space and defence and continues to play a critical role in meeting the material requirements of Indias strategic programmes.
Moreover JSL has been accredited by BrahMos Aerospace as a qualified vendor for supplying customised stainless steel and speciality low-alloy steel sheets and plates from its Hisar plant for use in cruise missiles, following a rigorous quality audit. This recognition reinforces JSLs expanding role in Indias defence sector and builds on its proven track record of supporting key strategic initiatives, including projects under DRDO and ISRO such as Chandrayaan,
PSLV and various missile programmes. Notably, JSL recently supplied special alloy sheets for the SMART system to enhance naval warfare capabilities. JSL continues to ramp up its production capacity and operates globally with a wide product range and an extensive distribution network for diversified stainless steel products.
Other Industries
The fertiliser industry relies on stainless steel due to the corrosive nature of its production processes, which can rapidly degrade conventional materials. Stainless steel enhances equipment durability and efficiency, making it the preferred choice for components such as heat exchangers, gas coolers, cool scrubbers, reactors, reboiler tubes and recovery columns. Stainless steel is also the preferred material for constructing process control equipment such as programmable logic controllers (PLCs) and distributed control systems (DCS). Urea is expected to continue holding a dominant share due to its sustained preference among small and marginal farmers. Meanwhile, non-urea fertilisers are likely to witness steady growth, driven by government initiatives such as the Soil Health Card scheme and increasing awareness about the importance of balanced fertiliser usage. Notably, the Namrup Urea Plant in Assam, with an annual capacity of 12.7 lakh metric tonnes, is expected to use around 4,000 tonnes of stainless steel, highlighting a significant opportunity for stainless steel producers.
In the paper industry, stainless steel is favoured for its durability, temperature tolerance and low maintenance. It is widely used across various stages of pulp and paper production in tanks, valves, pipes and other equipment. The stainless steel material is widely used in tanks, pipes, valves and other equipment and components involved in the process, thereby supporting stainless steel consumption. Similarly, the food processing and dairy industry remains a high-growth sector with immense value addition potential. Stainless steel is used extensively in processing and packaging equipment, accounting for over 90% of total stainless steel usage in this segment. Its key advantages—heat resistance, product purity and ease of cleaning—make it ideal for direct food-contact applications. Common equipment includes pasteurisers, homogenisers, separators, heat exchangers, mixing tanks, storage silos, road tankers, milking machines and bulk milk coolers, along with accessories like valves, fittings, pumps and lab instruments. With Indias growing role in global food trade and increasing domestic demand, stainless steel usage in food and dairy applications is expected to witness sustained growth.
Source:
https://www.iindalstainless.com/press-releases/iindal-stainless-supplies-special-allov-steel-sheets-in-drdos-smart-svstem-for-navv/
https://www.iindalstainless.com/press-releases/iindal-stainless-accredited-as-a-qualified-vendor-bv-brahmos-aerospace/
Consumer Goods
The consumer goods segment contributes to the significant consumption of stainless steel, supported by favorable demographic trends such as rising urbanisation, increasing nuclear households, higher disposable incomes, and the growth of the middle class. Evolving lifestyles and changing cooking and dining preferences have further boosted the demand for stainless steel kitchenware and tableware, especially products that offer both functionality and contemporary design.
Government initiatives promoting rural electrification have also enabled deeper penetration of consumer durables in rural areas, thereby increasing stainless steel usage in this segment.
An emerging niche application is the use of stainless steel in energy storage systems within smart home infrastructure, which supports uninterrupted power supply. While kitchenware continues to dominate stainless steel demand within the consumer goods category, the share of innovative applications, such as home delivery boxes and next-generation kitchenware, is expected to grow significantly by 2030.
Source: CRISIL Industry Report
Indian Stainless Steel Industry Outlook
Indias stainless steel industry is on a promising growth path, supported by strong economic fundamentals, rising infrastructure development, and progressive policy support. As one of the worlds fastest-growing economies, India is well-positioned to witness steady growth in stainless steel demand over the coming decades.
As India charts its path towards becoming a USD 40 trillion economy by 2047, core sectors such as construction, infrastructure, and manufacturing - significant contributors to the nations GDP - are poised to catalyse robust growth in stainless steel demand.
According to projections by the Indian Stainless Steel Development Association (ISSDA), domestic stainless steel consumption is expected to rise steadily to 12.5-12.7 million tonnes by FY2040 and further to 19-20 million tonnes by FY2047. As per ISSDA, in the near term, demand is anticipated to grow at a healthy pace of 7-8% annually over the next two to three years.
This trajectory is supported by planned infrastructure investments of approximately USD 1.4 trillion, which are expected to sustain momentum in key user industries.
Government initiatives such as the Atmanirbhar Bharat Abhiyan, built on the five pillars of economy, infrastructure, systems, demography, and demand, have further enhanced the domestic manufacturing landscape. The emphasis on self-reliance, coupled with policy-level incentives, is driving significant capacity additions across sectors.
These developments are expected to fuel stainless steel consumption across a wide array of industries including food processing, pharmaceuticals, power, dairy, oil & gas, and medical equipment. Additionally, emerging opportunities in areas such as green hydrogen are opening new avenues for application, where stainless steels corrosion resistance and durability make it a material of choice.
In the near term, growth momentum is being driven by substantial government investments under key initiatives such as the National Infrastructure Pipeline and PM GatiShakti, which are stimulating demand across core sectors. Increased capital expenditure in railways, roads, water infrastructure, and affordable housing- all of which rely heavily on stainless steel-will continue to be strong growth enablers for the stainless steel industry. This expansion is further supported by enabling policies including Atmanirbhar Bharat, the Production Linked Incentive (PLI)
Scheme, the amended DMI&SP Policy, and Make in India, all of which are strengthening domestic manufacturing capabilities and encouraging self-reliance. To further enhance competitiveness and ensure sustainable growth, proactive measures are being explored to address the impact of rising imports and maintain a healthy balance between domestic production and fair trade. Indias stainless steel industry is well-positioned to play a vital role in building a stronger, more resilient economy with continued policy support and increasing demand across sectors.
Source:
https://www.stainlessindia.org/UploadPdf/c39d81d1-1786-4ecc-ab87-9ee389645810.pdf
Opportunities
New and evolving uses of stainless steel in public infrastructure across India
India is witnessing a surge in demand for stainless steel across sunrise sectors and new-age applications. This growth is driven by the materials unique properties such as corrosion resistance, durability, hygiene, aesthetic appeal and sustainability. Stainless steels usage has moved beyond traditional applications to emerging sectors like architecture, transport and consumer goods, with particular momentum in process industries.
1. Process Industries - A Major Driver of Stainless Steel Demand
Ethanol Sector
The ethanol industry has emerged as a key consumer of stainless steel due to its requirement for corrosion-resistant materials in fermentation and distillation processes.
• Key Applications: Fermentation tanks, rectifier columns, molasses tanks and ethanol pipelines
Green Hydrogen
Stainless steel plays a critical role in hydrogen production, storage and fuel cell systems.
• Key Applications: Electrolyser components, cryogenic tanks, bipolar plates, hydrogen pipelines
Water Sector
Corrosion-resistant stainless steel is ideal for desalination and water treatment facilities.
• Key Applications: Trash racks, gates, screens, agitators, piping and filters
Nuclear Energy
Stainless steel is essential in nuclear power due to its strength and radiation resistance.
• Key Applications: Reactor vessels, spent fuel casks, piping, chimneys
2. Emerging Applications in Other Sunrise Sectors
Architecture, Building & Construction
• Applications: Facades, claddings, fixtures, escalators, canopies, handrails
• Trends: Growing use in metro stations, airports and public infrastructure
• India Focus: Facade usage still at a nascent stage; high growth expected
Automobile, Railways & Transport (ART)
• Applications: EV components, metro coaches (e.g. Vande Bharat), e-rickshaws, containers
• Trend: Post-Bharat VI norms, stainless steel usage in CVs is expected to double
• India Focus: Expansion of metro rail, electric buses, stainless steel in wagons
Consumer Durables
• Applications: Refrigerators, washing machines, cookware, home delivery boxes
• India Focus: Gaining traction in both household and modular kitchen segments
3. Other Noteworthy Applications
• Food & Dairy: Processing plants, mobile kitchens, solar dryers
• Space & Defence: Satellite components, missile launchers, marine systems
• Marine & Urban Infrastructure: Stainless steel in fish cages, smart poles, modular toilets
• Mass Transit Infrastructure: Stainless steel in foot overbridges (FOBs), bus shelters
• Ports and Marine: Stainless steel in pipelines, grills, oil platforms, heat exchangers docks, handrails, storage vessels
Green & Sustainable Wonder Metal:
Stainless steel has become a crucial material in sustainable construction due to its exceptional recyclability, durability and energy efficiency. It is 100% recyclable, with a high proportion made from recycled content, helping reduce environmental impact and earn green building credits. Its long service life and minimal maintenance needs further support sustainability by reducing material waste and resource use over time, making it ideal for eco-conscious infrastructure.
In terms of performance, stainless steel plays a significant role in improving building energy efficiency. Its excellent thermal properties make it suitable for applications such as Heating, Ventilation and Air Conditioning (HVAC) systems, reflective roofing and insulation supports contributing to lower energy consumption and supporting certifications like Leadership in Energy and Environmental Design (LEED) and Building Research Establishment Environmental Assessment Method (BREEAM). Its non-toxic nature also promotes healthy indoor air quality, aligning with green standards that prioritise occupant wellbeing and safety.
Moreover, the stainless steel industry has advanced significantly in reducing its carbon footprint through modern manufacturing practices such as electric arc furnaces and increased use of renewable energy. Environmental Product Declarations (EPDs), ISO 14001 certifications and other eco-labels further validate its status as a sustainable material. As a result, stainless steel not only enhances building performance and aesthetics but also supports global goals for green, low-impact construction, reinforcing its reputation as a truly green and sustainable “wonder metal.”
Government Initiatives
1. National Stainless Steel Policy
Industry as requested a National Stainless Steel Policy that will lay out medium- and long-term targets for both production and consumption. This initiative is expected to offer clarity regarding critical raw material requirements in the stainless steel industry and address the implications of rising imports, particularly from countries like China. The policy aims to strengthen the domestic stainless steel ecosystem by promoting self-sufficiency, enhancing quality standards and improving the competitiveness of Indian producers in the global market.
2. Stainless Steel Policy for Coastal Infrastructure
As part of its efforts to promote sustainable infrastructure ! and boost domestic demand for stainless steel, the Ministry of Road Transport and Highways (MoRTH), Government of India, has mandated the use of high- tensile stainless steel in the construction of bridges, particularly in coastal areas and other climate-sensitive zones. This initiative aims to enhance the durability, safety and structural resilience of national infrastructure against the adverse effects of high tides, saltwater exposure and frequent storms. By replacing conventional materials prone to corrosion with sustainable stainless steel, the government seeks to reduce maintenance costs, extend asset lifespan and mitigate environmental impact in vulnerable regions. Indias 7,516.6 km-long coastline faces significant corrosion challenges due to high salt content. The revised policy expands the mandatory use of stainless steel beyond the earlier 15km coastal zone to broader marine exposure regions, considering climate change-induced risks. It prescribes the use of stainless steel with high chloride corrosion resistance for bridge superstructures and other critical infrastructure. Though initial construction costs may rise by 10-15%, the policy is expected to improve the life of structures up to 75 years and cut maintenance expenses by up to 50%, supporting long-term sustainability.
India is advancing several strategic coastal infrastructure projects that will drive demand for stainless steel.
Notable among these are the INR 13,000-crore Mumbai Coastal Road Project featuring Indias first undersea tunnel, the 21.8 km Mumbai Trans Harbour Link (MTHL) and the Vizhinjam Deep-Sea Port, being developed by Adani Ports with an investment of INR 7,525 crore. Additionally, the USD 9.14 billion Vadhavan Port project and the Sagarmala Programme-focused on port modernisation and coastal connectivity with a INR 5.56 lakh crore outlay-are set to boost maritime trade and demand for corrosion-resistant materials. Other projects like the Paradip Port Expansion, Chennai Peripheral Ring Road and Kakinada Petrochemical Complex will further support stainless steel consumption through increased infrastructure development in coastal zones.
3. Other Initiatives
The Government of India has launched several ambitious initiatives such as the Atal Mission for Rejuvenation and Urban Transformation (AMRUT), Smart Cities Mission, Swachh Bharat Mission, Sagarmala and Transit Oriented Development to modernise and expand the countrys rural and urban infrastructure, including metro rail networks, railways, airports and bus rapid transit systems. These programmes have significantly increased the deployment of stainless steel across a variety of public infrastructure applications. Notable applications include facades and car park structures at government buildings such as the Central Vigilance Commission, using AISI 304 grade, structural support components using Dual 304 and public art installations like the ‘Tree of Prosperity and the ‘Make in India lion logo using Grades 430 and 304. Stainless steel enclosures have been used at places like Arignar Anna Zoological Park in Chennai, while bus shelters in metros and Tier 2 cities, e-toilets, mobile water ATMs and smart poles in smart cities increasingly utilise grades like SS 304 and 316L. Additionally, stainless steel finds application in foot overbridges (FOBs) and road overbridges (ROBs), such as the one at Bhayandar railway station. Collectively, these initiatives represent substantial growth potential for stainless steel usage across Indias expanding public infrastructure landscape.
Government policies and strategic initiatives, including the National Stainless Steel Policy, PLI schemes and coastal infrastructure mandates, position stainless steel as a critical enabler of Indias infrastructure and industrial growth. Increased adoption of stainless steel in high-corrosion and high-durability applications, especially along coastal regions, is expected to enhance its demand substantially. Combined with rising investments in railways, highways, ports and strategic sectors, the stainless steel industry is well-placed to witness robust growth in the coming years.
Source:
CRISIL Intelligence Report
https://www.bigmint.co/intel/detail/india-budget-fv26-tariff-on-stainless-steel-flat-products-revised-effective-duty-unchanged-32133#:~:text=In%20a%20move%20to%20support.as%20part%20of%20Budget%2QFY26.
https://ssmb.in/2025/06/12/policy-shift-high-tensile-stainless-steel-now-mandatory-for-bridge-construction-in-india/
Threats
• Volatility in Raw Material Prices: Stainless steel production depends heavily on key alloying elements like nickel, chromium and molybdenum. The prices of these metals are influenced by geopolitical tensions, mining regulations and speculative trading, which can disrupt supply chains and profit margins. A sudden spike in nickel prices, for example, can make stainless steel economically unviable for some applications.
• Rising Import Pressure on Domestic Industry: The
Indian stainless steel industry is facing a significant challenge from the rising influx of cheap imports, particularly from China and Vietnam. These low-cost imports, mainly of flat products, are entering through Association of Southeast Asian Nations (ASEAN) and Free Trade Agreement (FTA) partner countries, intensifying competition and impacting capacity utilisation. This shift has led to India becoming a net importer of stainless steel, despite having substantial domestic production capacity.
• Absence of a Dedicated Policy: Stainless steel is presently governed under the broader carbon steel framework, which overlooks the distinct needs and challenges of the stainless steel industry. The ISSDA and industry stakeholders have stressed the importance of a standalone policy to enable optimal capacity utilization and drive sustainable industrial and economic growth.
• Global Trade Instability: The stainless-steel market is influenced by global trade dynamics, with evolving tariffs and policies impacting export competitiveness. Recent trade measures, such as US tariffs on Indian steel, have created challenges but also opened avenues for strategic realignment.
• Overcapacity and Competition: Global stainless steel production capacity, especially in China, often exceeds demand, leading to market saturation and downward pressure on prices. Countries with lower labour and energy costs can export stainless steel at cheaper rates, challenging the viability of manufacturers in regions with stricter labour and environmental standards.
Source:
https://stainlesstoday.com/5-ways-stainless-steel-boosts-green-building-certifications/
Operational Overview
JSL has two key plants, Hisar (0.8 MTPA) and Jajpur (2.2 MTPA), underscore its focus on scale, efficiency, and quality. The companys manufacturing strength lies in its resilient, flexible systems that adapt seamlessly to diverse customer requirements.
Domestically, JSLs operations span a diverse and strategically integrated set of facilities. Jindal United Steel Limited contributes with a substantial 3.2 MTPA hot rolling capacity and Chromeni Steels offers 0.6 MTPA of cold rolling capacity with robust downstream capabilities. Jindal Lifestyle Ltd. focuses on high-quality stainless steel lifestyle products. Jindal Stainless Steelway functions as a dedicated domestic service centre, providing customised stainless steel solutions. Rabirun Vinimay supports of pipe and tube capacity and JSL Super Steel, with a 0.16 MTPA capacity for long products such as wire rods and rebars, further enhances the Companys diversified product portfolio.
Globally, JSL is strengthening its presence through strategic investments and international partnerships. In Spain, Iber
Jindal serves as an advanced service centre, enabling JSL to efficiently cater to the European markets. In Indonesia, JSL holds a 49% stake in PT Glory Metal Industry, a joint venture operating a 1.2 MTPA nickel alloy facility that significantly enhances the Companys melt capacity. Additionally, a 49% stake in PT Cosan Metal Industry ensures critical raw material security through a nickel pig iron smelter, reinforcing JSLs backward integration and global competitiveness.
Quality assurance is a core pillar of Jindal Stainless operations. The company maintains stringent quality protocols across the value chain, from raw material sourcing to final output, ensuring each batch of stainless steel meets the exacting standards demanded by its diverse industry clientele.
In FY25, Jindal Stainless recorded its highest- ever standalone sales volume at 23,73,070 tonnes, marking a 9% year-on-year growth. This performance, achieved with s the strength of domestic demand.
The company is also scaling up capacity, targeting an annual melt capacity of 4.2 million tonnes by FY27.
Company Overview
About Jindal Stainless Limited
Established in 1970, Jindal Stainless Limited (JSL) is one of Indias foremost stainless-steel manufacturers, with a robust presence across both domestic and international markets. The Company has earned a strong reputation through continuous innovation, a dedicated workforce, ethical business practices, and a customer-centric approach. Committed to the highest standards of safety and efficiency, JSL currently operates with a significant production capacity and is actively expanding its operations. It aims to scale its annual melt capacity from 3.0 million tonnes (MT) in FY25 to 4.2 MT in FY27. With fully integrated operations, JSL maintains a clear competitive edge in cost efficiency and operational excellence, reinforcing its leadership in the global stainless-steel industry.
JSL operates 16 stainless steel manufacturing and processing facilities across India, Spain, and Indonesia (as on March 2025), and maintains a global footprint spanning 12 countries. In India, the Company has established ten sales offices and six service centres, supporting its nationwide reach. Its primary manufacturing hubs are strategically located in Jajpur, Odisha and Hisar, Haryana, forming the backbone of its domestic production capabilities and enabling its broader international growth strategy.
Sustainability remains a core focus in JSLs production processes. The Company uses electric arc furnaces (EAFs) with scrap as the primary input, currently accounting for approximately 72% of total input, which significantly reduces greenhouse gas emissions and ensures full recyclability. JSL has committed to lowering its carbon emission intensity by 50% by FY35 and aspires to achieve net-zero emissions by 2050, reaffirming its commitment to environmental responsibility and sustainable manufacturing.
Product Portfolio
JSL is a leading Indian manufacturer specializing in stainless steel across the 200, 300, 400 and duplex series. Its product offerings are shaped by advanced technology, a diverse portfolio, extensive cross-sector expertise and a strong customer-centric approach backed by over five decades of industry experience. The range includes stainless steel slabs, blooms, coils, plates, sheets, precision strips, wire rods, rebars, blade steel and coin blanks.
Product Applications and Industries Served Architecture, Building and Construction
JSL offers exceptional design flexibility for construction projects, backed by high strength, corrosion resistance and fire-resistant properties.
Automotive and Transport
Stainless steels high strength-to-weight ratio, excellent corrosion resistance and long-lasting durability make it a vital component in the automotive industry.
Railways
Stainless steel is extensively used in the railway sector for its durability, lightweight nature, energy efficiency and recyclability. Its application in coaches and metro trains is growing, supported by national initiatives like Amrit Bharat and Vande Bharat. While demand for stainless steel wagons has seen a slight dip due to shifts in the wagon mix, upcoming tenders are likely to revive momentum.
Process industry
Stainless steel plays a vital role in the chemical, processing and oil & gas industries, owing to its excellent resistance to corrosion and its ability to perform under both high and low temperatures. JSLs specialised stainless steel grades offer the strength and reliability needed to withstand the rigorous demands of petrochemical, fertiliser and chemical manufacturing sectors—covering both organic and inorganic processes. These materials are widely used in essential process equipment such as tanks, reactors, vessels, pipes, pumps and valves. Their outstanding mechanical properties and corrosion resistance make them the preferred choice for critical operations in these industries.
Infrastructure
JSLs stainless steel offers excellent design flexibility, along with superior strength, corrosion resistance and fire-resistant properties, making it ideal for construction applications. Demand is expected to rise with increasing use in infrastructure projects such as flyovers, road-overbridges (ROBs) and foot-over-bridges (FOBs), particularly in coastal regions. The outlook remains positive, supported by ongoing urbanisation and infrastructure growth, which is also expected to sustain strong demand for lifts and elevators.
Aerospace & Defence
JSL, through its strategic arm Jindal Defence and Aerospace (JDA), continued to strengthen its presence in the defence and aerospace sectors. In FY25, JDA was accredited by BrahMos Aerospace as a qualified vendor after a stringent audit and successfully supplied low-alloy steel sheets for missile carrier applications, meeting their high-quality standards. It also secured a repeat order from Hindustan Aeronautics Limited - Aerospace Division for PSLV motor casings, following its earlier supply for small satellite launch vehicles. In addition, JSL supplied austenitic stainless steel and low-alloy steel to the Indian Space Research Organisation (ISRO) for satellite launch vehicle appliations. JDA also secured its first commercial contract from KS Engineering, where its material will be used by Bharat Electronics Limited in sensor plate applications. The Company is also developing precipitation-hardened stainless steel strips for anti-tank guided missile wings, supporting advanced missile systems and aligning with the ‘Make in India initiative.
Consumer Durables
JSL provides a wide selection of stainless steel grades tailored to meet these needs. Through its subsidiary, Jindal Lifestyle Limited, the Company has built a strong global presence by offering high-quality stainless steel lifestyle products.
Driven by high standards for quality, hygiene, durability and appearance, the consumer durables industry uses stainless steel for its strong resistance to corrosion and sleek finish.
New Age Applications
JSL is witnessing strong demand for stainless steel across a wide range of emerging sectors, driven by its unique properties such as high strength, corrosion resistance, light weight and long-term durability. The material is increasingly being used in advanced automotive components like grommet gaskets, bipolar plates for hydrogen fuel cell vehicles, turbine housings and transportation containers. It is also gaining traction in small electrified vehicles, bicycles, sailboats and yachts.
Beyond mobility, stainless steel is finding increased use in consumer electronics, home appliances and kitchenware due to its hygiene and aesthetic qualities. In the industrial segment, it supports critical applications in food processing, pharmaceuticals and mining machinery. Emerging sectors such as ethanol production, green hydrogen and water treatment are driving additional demand, with stainless steel playing a key role in fermentation tanks, electrolyzers, storage tanks and distribution systems.
JSL is also tapping into applications in nuclear power, space exploration, defence and marine systems—where stainless steel is valued for its performance under extreme conditions. From reactor vessels and missile launchers to components in satellite launch vehicles, the Companys products are integral to high-tech, sustainable infrastructure. With these diverse applications, JSL is well-positioned to support the evolving needs of a future-ready economy.
Key Business Strategies
During FY25, Jindal Stainless made strategic investments aimed at enhancing the Companys melting and downstream capacity to 4.2 million tonnes per annum (MTPA). This includes acquiring a 49% stake in a joint venture for a 1.2 MTPA stainless steel melt shop in Indonesia, with an investment of approximately INR 700 crore. The Company has allocated around INR 1,900 crore for the expansion of its downstream processing lines in Jajpur, Odisha, to accommodate the increased melting capacity. It has also earmarked nearly INR 1,450 crore for infrastructure upgrades, including railway sidings, sustainability-focused projects, and renewable energy generation initiatives.
As part of its expansion strategy, JSL acquired Chromeni Steels Limited (CSL), thereby making it wholly-owned subsidiary. CSL owns a 0.6 MTPA cold rolling mill located in Mundra, Gujarat, and the acquisition was executed through a structured indirect deal.
• Joint Venture in Indonesia: Jindal Stainless entered into a joint venture (JV) for developing and operating a stainless steel melt shop (SMS) in Indonesia with an annual production capacity of 1.2 million tonnes per annum (MTPA). This will increase the Companys melting capacity by over 40% to 4.2 MTPA at an investment of more than INR 700 crore, which is expected to be commissioned in FY27. This is to ensure to meet the rising demand of stainless steel.
• Focus on downstream expansion and overall balancing: JSL is steadily increasing the share of cold- rolled and hot-rolled products in its portfolio to meet rising demand from sectors such as automotive, railway, infrastructure, process, consumer durables and precision engineering. Known for their superior surface finish and tighter tolerances, these products are well-suited for high- quality, precision applications.
In FY25, JSL acquired Chromeni Steels, thereby making it a wholly owned subsidiary. Located in Mundra, Gujarat, Chromeni Steels operates a 0.6 MTPA cold rolling mill, significantly enhancing JSLs capabilities in value-added cold rolled products. Chromeni Steels commenced operations in FY25, creating a ready market for JSLs upstream output. This strategic acquisition will also support better balancing of JSLs overall downstream facilities, contributing to improved operational efficiency.
To further strengthen its downstream operations, JSL allocated approximately INR 1,900 crore towards the expansion of its hot-rolled and cold-rolled processing lines at its Jajpur, Odisha facility. This expansion is designed to accommodate the increased melt capacity and support the Companys broader growth trajectory.
• Infrastructure and Sustainability Projects:
Approximately INR 1,450 crore has been earmarked for infrastructure upgrades, including railway siding, sustainability initiatives, and renewable energy generation.
• Backwards integration/raw material security: Jindal Stainless has acquired a 49% stake in Indonesia-based nickel pig iron (NPI) company, in 2023 and commissioned in FY25. This facility enhances backward integration and secures access to critical raw materials. It ensures a steady and reliable supply of nickel, supporting consistent margins amidst global price volatility and addressing the challenge of Indias limited domestic nickel reserves. Backed by strong operations in India, JSL continues to scale with agility, further reinforcing its leadership position in the global stainless-steel industry.
Other Initiatives
• In FY25, JSL completed its full exit from Jindal Coke Limited (JCL) by divesting its remaining 21.13% stake through a buyback, following an earlier 4.87% stake sale in FY24, resulting in total proceeds of INR 194.89 crore. The divestment is done since JCLs business activities are not the core business activities of the Company. Moreover, JSL has committed itself to achieving Net Zero carbon emissions by 2050 by integrating sustainability into its business strategy and operations to create value for stakeholders while minimising its environmental impact.
• During FY25, the Company acquired a 9.62% stake in M1xchange, Indias leading RBI-licensed Trade Receivables Discounting System (TReDS) platform to digitise its supply chain, reduce the working capital cycle and enable cheaper credit access across its global value chain.
• Aligned with the anticipated growth in the stainless steel sector, JSL signed a non-binding Memorandum of Understanding (MoU) with the Government of Maharashtra in FY25 to explore an investment of INR 40,000 crore for establishing a stainless steel manufacturing facility in the state. The proposed plant, to be developed over the next decade, is expected to create over 15,000 jobs and reflects the Companys commitment to meeting future demand through sustained capacity building.
• ESG Initiatives: JSL has taken several impactful steps toward sustainability and innovation. In March 2024, the Company commissioned Indias first green hydrogen plant in the stainless-steel sector, capable of producing 90 Nm3 of green hydrogen per hour, helping cut 2,700 tCO2e emissions annually. This effort aligns with JSLs Net Zero vision for 2050, having already reduced 3,18,248 tonnes of CO2 in FY25 and achieving a total reduction of 9.53 lakh tonnes over the past four years. In April 2024, the Company announced its official commitment to the near-term science-based emissions reduction and Net Zero targets outlined by global climate action body Science- Based Targets initiative (SBTi), in a significant step towards achieving carbon neutrality. That same year, the Jajpur facility became home to Odishas largest captive solar power installation, featuring a 7.32 MWp floating solar plant and a 23.02 MWp rooftop system. Together, these are set to cut emissions by over 32,000 metric tonnes annually, while also optimising space and reducing water evaporation
• Accelerating Digital Transformation & Technology Adoption: JSL is accelerating its digital journey by embedding smart technologies across its value chain.
The Company is implementing automation, real-time analytics and AI-led tools to enable intelligent operations. JSL is enhancing decision-making and responsiveness to market shifts with these initiatives. The Company is positioning itself as a future-ready, tech-enabled enterprise committed to sustained innovation and operational excellence.
Financial Overview
Standalone INR (in crore) |
FY25 | FY24 | YOY Change (%) |
| Sales Volume (Tonnes) | 23,73,070 | 21,74,610 | 9% |
| Revenue | 40,182 | 38,356 | 5% |
| EBITDA | 3,905 | 4,036 | -3% |
| Other Income | 639 | 369 | 73% |
| Finance Cost | 442 | 393 | 12% |
| Depreciation | 735 | 715 | 3% |
| Exceptional items | 152 | 31 | NA |
| PBT | 3,519 | 3,328 | 6% |
| Tax | 808 | 797 | 1% |
| PAT | 2,711 | 2,531 | 7% |
In FY25, the Company achieved a sales volume of 23,73,070 tonnes, reflecting a 9% increase from 21,74,610 tonnes in FY24. Standalone revenue from operations rose by ~5%, reaching INR 40,182 crore, up from INR 38,356 crore in the previous year. Standalone EBITDA stood at INR 3,905 crore for FY25, witnessing a 3% decline compared to INR 4,036 crore in FY24. Net profit stood at INR 2,711 crore, marking a 7% increase from INR 2,531 crore in the previous year. Capital employed grew to INR 20,324 crore in FY25, up from INR 17,191 crore in FY24.
The Board recommended a final dividend payment of INR 2 for FY25 subject to approval of shareholders, taking the total dividend payment to INR 3 i.e. 150% per equity share with a face value of INR 2 each.
Ratios
Key Financial Ratios |
FY25 | FY24 | % Change |
| Debtors Turnover | 11.7 | 11.3 | 4% |
| Inventory Turnover | 3.5 | 3.5 | -1% |
| Interest Coverage Ratio | 10.3 | 11.2 | -8% |
| Current Ratio | 1.2 | 1.4 | -12% |
| Net Debt to Equity Ratio* | 0.1 | 0.2 | -21% |
| Net Debt to EBITDA Ratio* | 0.6 | 0.6 | -4% |
| EBITDA margin (%) | 9.7% | 10.5% | -1% |
| Net Profit Margin (%) | 6.7% | 6.6% | 0% |
| ROE % | 18.1% | 20.1% | -2% |
| ROCE % | 16.9% | 20.9% | -4% |
*Net debt includes only external debt only
Likewise, Return on Equity (ROE) down to 18.1% in FY25, from 20.1% in FY24. Even with substantial investments through both organic growth and acquisitions, the Company maintained strong financial metrics, with a net debt-to-EBITDA ratio of 0.6 and a net debt-to-equity ratio of 0.1x. ROE and Return on Capital Employed (ROCE) were recorded at 18.1% and 16.9%, respectively.
Business Outlook
JSL marked a significant year in FY25 by reinforcing its leadership in the domestic market and building a more resilient and future- ready supply chain. The Company successfully commissioned its Nickel Pig Iron facility in Indonesia ahead of schedule, completed the acquisition of Chromeni Steels to enhance its cold-rolled product offerings and invested in M1xchange to support digital innovation. These strategic moves strengthened the Companys value chain by improving raw material security, expanding its product range and advancing digital capabilities. JSL aims to further strengthen operational performance, expand market presence and enhance customer experience in the years ahead. The Company is actively promoting innovation through targeted business development efforts to increase stainless steel adoption and generate long-term value. JSL, with its broad portfolio of standard and specialised stainless steel grades, is well-prepared to meet evolving customer requirements with speed and precision. Moreover, the company has signed a non-binding MoU with the Maharashtra government to set up a greenfield stainless steel plant with a planned capacity of 4 million tonnes per annum, entailing an investment of INR 40,000 crore.
JSL is investing in research and development, leveraging predictive analytics and continuously optimising its product mix to maintain a competitive edge. The Company is also improving internal processes and ensuring timely deliveries to manage external risks such as inflation and raw material price volatility. JSL continues to place sustainability at the core of its strategy. The Company is expanding its use of renewable energy, accelerating the adoption of green hydrogen and developing high-performance stainless steel grades for infrastructure, logistics and industrial sectors.
JSL is also committed to strengthening its leadership in transparent ESG disclosures and responsible business practices. JSL is well-positioned to benefit from strong domestic growth, particularly in sectors like infrastructure and railways. The Company is confident that its strategic initiatives will drive the next phase of growth and value creation.
Risk and Mitigation Strategies
Key Risks |
Particulars |
Mitigation Strategy |
| Raw Material Price Risk | Nickel and ferrochrome play a vital role as raw materials in stainless steel production, having a substantial impact on the Companys manufacturing costs. As commodity-based inputs, their prices and supply are prone to fluctuations, which can lead to cost variations for downstream industries. | The Company actively navigates these challenges by refining its approach to ensure a steady and cost- efficient supply of key raw materials. It has forged strategic alliances with trustworthy suppliers, both domestic and international, to guarantee ongoing material availability. JSL partnered with New Yaking Pte Ltd through a joint venture, securing long-term access to nickel pig iron required for stainless steel production. |
| Import Risk | Indias stainless-steel sector is under pressure from low-cost imports, particularly from China, a situation intensified by Free Trade Agreements (FTAs) such as the ASEAN FTA, which grant preferential treatment to partner countries and erode domestic margins. These imports, often of inferior quality, continue to disrupt the Indian market and place added strain on the MSME segment by undermining fair competition and stalling industry innovation. To counter these challenges, there is an urgent need for tighter oversight of import prices and stronger regulatory enforcement. Measures like enhanced port surveillance and greater authority for customs officials are critical. Although some guidelines are in place, prompt and effective execution remains vital. Additionally, India currently lacks mechanisms to ensure fair competition against dumping practices, while many other countries have adopted Level playing field initiatives such as countervailing duties (CVD), anti-dumping duties (ADD) and non-tariff measures like the EUs Carbon Border Adjustment Mechanism (CBAM). | The level playing field will offers JSL a strategic opportunity to scale up its production capacity and cater to the expanding domestic demand, which is currently being fulfilled by low-cost imports. The Company supports measures that protect local manufacturers and encourage the growth of domestic output. As part of Indias push toward becoming a developed economy and promoting indigenous, sustainable solutions, the demand for metals—especially stainless steel—is expected to rise, particularly in infrastructure segment in alignment with national goals, JSL is focused on creating new product grades, expanding market presence and exploring new applications to serve domestic needs and reduce import dependence. This milestone underscores the Companys ability to localise production and strengthen supply chains. Additionally, JSL continues to diversify its product portfolio to manage risks and reduce reliance on any one segment. Government of India (GOI) focus on curbing import of sub standard material, especially of Chinese origin, through BIS standards & QCO is highly appreciated. |
| Supply Chain Risk | Fluctuations in the supply chain-driven by factors such as natural calamities, geopolitical unrest, economic slowdowns and technological disruptions-pose a considerable risk to the stainless-steel industry. Incidents like earthquakes, floods and political conflicts can impair infrastructure and interrupt logistics, leading to raw material shortages. Additionally, global tensions and increasing fragmentation can introduce trade restrictions and heighten uncertainty, potentially impacting the Companys operational efficiency and financial performance. | JSL has established robust systems to source raw materials from a diverse range of suppliers, reducing supply chain risks and supporting uninterrupted production. Its ability to swiftly respond to evolving geopolitical dynamics enhances the Companys capacity to operate effectively within an increasingly complex global economy. JSL also sources raw materials domestically and from nearby shores, ensuring supply chain efficiency. |
| Regulatory Risk | Regulatory risks stemming from changes in laws or directives issued by governments and regulatory bodies can have a substantial impact on businesses, industries and markets. Such shifts may lead to increased operating costs, reduced investor interest, or a reshaping of competitive dynamics within the sector. In more serious cases, these changes can hinder a Companys potential for growth. Moreover, exporting to regions with varying degrees of political and economic stability adds another layer of complexity to operational performance. Within the broader steel policy framework, the stainless-steel industry often faces challenges due to its distinct nature. As a segment defined by high-value, low-volume products, stainless steel demands focused policies, which are frequently overlooked under the integrated approach applied to the general steel industry. | JSL actively tracks regulatory changes in the stainless-steel sector and adapts its strategies to manage potential risks while contributing to industry advancement. As a testament to its dedication to quality and compliance, the Company was among the earliest to apply for and obtain certifications across various product grades. At the same time, the government is working on formulating policies such as the National Stainless-Steel Policy to provide further support to the sector. |
| Financial Risk | The Company is exposed to financial market fluctuations, especially changes in interest rates and also faces currency risk stemming from its substantial import and export operations. | JSL emphasises sound financial risk management by keeping leverage ratios in check and strengthening its credit profile. The Company strategically manages its capital structure by reducing debt, refinancing to extend average loan maturity and boost investment returns and optimising the cost of both fixed and variable interest rates. Additionally, it employs effective hedging techniques to manage exposure to foreign currency fluctuations. |
| Cyber Risk | The growing use of digital systems enhances efficiency; it also exposes the Company to cybersecurity risks. Such threats can interrupt operations and endanger data security. Cyberattacks might cause production delays, equipment breakdowns, or physical damage, resulting in operational disruptions, financial setbacks and reduced product quality. | To address this risk, the Company has put in place strong network security protocols, conducts regular system updates, provides employee training and maintains comprehensive incident response plans. In May 2025, JSL has achieved ISO/IEC 27001:2022 certification, which demonstrates its commitment to implementing a structured and internationally recognised Information Security Management System (ISMS). This ensures systematic identification, assessment, and mitigation of information security risks across the organisation. JSL ensures continuous operations and maintains the quality and reliability of its products and services by prioritising data protection and shielding its manufacturing processes from cyber threats |
| Environment and Climate Risk | With the global push towards decarbonisation and responsible sourcing, environmental and climate risks have become increasingly material for the stainless steel industry. One of the most prominent regulatory risks is the European Unions Carbon Border Adjustment Mechanism (CBAM), which imposes carbon tariffs on imports from countries lacking comparable carbon pricing frameworks. Additionally, Indias limited domestic reserves of key inputs like nickel may further compound climate-related supply chain vulnerabilities. | JSL has adopted a forward-looking approach to mitigate environmental and climate risks risks by integrating sustainability deeply into its operations. The company is investing in low-emission production technologies, expanding the use of renewable energy and optimising raw material sourcing through backward integration, such as its nickel initiatives. It is also increasing scrap utilisation and deploying circular economy measures to reduce lifecycle emissions. To address CBAM specifically, JSL is enhancing its carbon accounting and emissions transparency in line with global standards, while actively evaluating the use of green hydrogen and electrification for future operations. These initiatives aim to future-proof the business, maintain cost competitiveness and ensure continued access to key international markets. |
Human Resources
JSL believes that its people are the foundation of its success and is committed to creating an enabling environment that supports professional growth, inclusivity and high performance. As of FY25, the Company has over 24,000 employees. The company has taken proactive steps to attract, retain and develop talent through well- structured recruitment strategies, leadership development programmes and continuous learning initiatives. Moreover, a strong emphasis is placed on employee engagement, performance-driven culture and workplace well-being.
One such step is strategic Employee Value Proposition (EVP) campaign anchored in five foundational pillars: Learning Opportunities, Leadership Development, Sectoral Exposure, Community Bonding, and Innovation Autonomy. The campaign gained visibility through a powerful audio-visual execution.
The substance of the campaign - fostering an ecosystem where careers flourish, capabilities are nurtured, and individuals are empowered to lead change - has significantly boosted Jindal Stainless narrative as a launchpad for growth, experimentation, and meaningful contribution.
The EVP campaign emerges as both a reflection and reinforcement of the organisations people-first philosophy. Against the backdrop of Jindal Stainless rapid growth - from USD 2.4 billion to USD 4.7 billion in revenue in three years - the initiative underscores the companys inseparable trajectory from the ingenuity, ambition, and resilience of its people.
Furthermore, JSL is leveraging digital HR and AI tools to align with evolving workforce expectations and promote a culture of collaboration and innovation. AI is leveraged in key HR functions such as Talent Acquisition to screen candidates and generate job descriptions, summarise engagement survey results, and suggest action plans. Similarly, the company has a comprehensive, AI-enabled HR ecosystem This integrated framework enables self-service capabilities, supports data-driven decision-making, and promotes inclusive employee engagement across various digital interfaces.
Research & Development (R&D)
Innovation through R&D remains central to JSLs strategy for value creation and technological leadership. The Company is focused on developing high-performance products, enhancing metallurgical capabilities and advancing sustainable manufacturing processes. R&D efforts are directed towards meeting specific customer requirements, innovation, improving operational efficiency and supporting the shift to greener technologies. JSL actively partners with academic institutions, research organisations and industry consortia to co-create solutions that address both present and future market needs. The Companys R&D investments continue to strengthen its position as a forward-thinking and responsible industry leader.
In FY25, JSL R&D developed 5% silicon-containing austenitic stainless steel (UNS S32615) grade through an intensive research program for commercial supplies. With the addition of 5% silicon, this grade is highly corrosion- resistant in strongly oxidizing acid environments, particularly in sulfuric and nitric acids. Its application includes sulfuric acid absorption towers and pump tanks, acid coolers, pipes and fittings, nitric acid tanks, pipes and condensers.
This development will aid the Companys vision of substituting imports and making India truly Atmanirbhar.
Internal Financial Controls
The Company has implemented strong internal financial controls related to its financial statements. These controls were rigorously evaluated throughout the year, with no major deficiencies found in their design or functioning. This outcome highlights the Companys dedication to upholding sound financial governance and guaranteeing the accuracy and dependability of its financial reporting. The internal control framework is continuously reviewed and enhanced to align with evolving regulatory requirements and best practices.
The Company also ensures that employees are regularly trained and sensitised on internal control protocols to maintain high standards of compliance and accountability.
Digitalisation
JSL continues to advance its digitalisation agenda to align with the evolving expectations of its customers.
The companys digital transformation efforts are strategically focused on leveraging technology to enhance customer engagement and streamline operations.
A notable development in this direction is the launch of a B2B E-Commerce Portal, built on the SAP Cloud (Hybris) platform. This scalable, cloud-based platform integrates seamlessly with JSLs backend systems, offering real-time data access and facilitating efficient, transparent customer interactions.
Through such digital initiatives, JSL has improved service availability, reduced human intervention, and provided 24/7 access to transactional information. These measures not only empower customers to make informed decisions but also reinforce the companys commitment to building a responsive, digitally enabled business ecosystem.
Key digital milestones enhancing customer experience:
• B2B E-Commerce Portal
• Customer 360 Dashboard
• Automated Payment Solutions
• Complaint Management & Service
• Online Auction Facility
Digitising Manufacturing
As part of its broader digital transformation journey,
JSL launched Project Pragati, a pioneering initiative to automate the entire production process, from casting to finishing at its Hisar manufacturing unit.
This end-to-end digital solution integrates advanced planning and execution technologies using Dassault Systemes
Delmia applications, with Capgemini serving as the implementation partner. By enabling real-time visibility and coordination across operations, Project Pragati is expected to significantly reduce customer lead times, optimise inventory levels, and enhance overall manufacturing efficiency.
Building a Future-Ready Enterprise
As part of its aggressive growth strategy, Jindal Stainless is actively embracing cutting-edge technologies, such as IoT, Advanced Analytics, and AI/ML, to support its ambitious expansion strategy. AI models are being deployed to improve product quality through automated surface inspection and predictive maintenance.
For instance, SmartFactory 4.0, which captures sensor data across multiple levels of operations, facilitates real-time insights powered by edge analytics and cloud integration, thereby empowering shop-floor teams and leadership alike to make faster, data-driven decisions.
Beyond manufacturing, JSL is leveraging AI across business functions, including procurement, sales, and finance to analyse import trends, market sentiment, and operational data, thereby enabling smarter and more responsive decision-making. In IT, Generative AI is accelerating development cycles through intelligent code generation and automated code reviews.
These innovations, built on a strong cloud and mobility foundation, align with the companys World Class Manufacturing (WCM) pillars, ensuring a strategic and scalable approach to smart plant development.
Stainless Academy
In line with its commitment to advancing the stainless steel ecosystem in India, Jindal Stainless established the Stainless Academy. The Academy aims to raise awareness and promote stainless steel as the ‘metal of the future by highlighting its benefits and diverse applications. It actively engages students, professionals, manufacturers, and ecosystem partners to drive category recognition and skill development.
Key Objectives of Stainless Academy:
1. Driving awareness
2. Upskilling and building capability
3. Creating partnerships for research & innovation
4. Category recognition for stainless steel
Key Initiatives of Stainless Academy:
• Fabricators Training Programme (FTP)
• Industry and MSME training programs
• Stainless Steel course in Academic Institutions
- Stainless Steel Elective Course in Engineering Colleges
- Stainless Steel Course in the Govt. Polytechnics
- Stainless Steel Fabrication Course in Industrial Training Institutes (ITIs)
• Qualification Packs-based Training Programmes (QPTPs)
• Training and Display Vans
New Initiatives:
• On-boarding of external Training partners
• Training Need Assessment (TNA)
• Events and Conferences
- FICCI Global Skills Summit 2024
- IndiaWelds Synergy 5.0
- FICCI East India Skill Connect Summit 2025
Cautionary Statement
This Management Discussion and Analysis contains forward-looking statements related to guidance, industry outlook and anticipated future operational or financial performance. Terms such as anticipates, believes, expects, intends and similar expressions are used to indicate these statements. These forward-looking statements represent managements current views and involve inherent uncertainties. Actual outcomes may vary significantly due to factors such as fluctuations in foreign exchange rates, shifts in global economic conditions and customer demand, geopolitical events, growth rates and others. The Company does not undertake any obligation to update, amend, or revise these statements except as required by law.
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