India Electrical Steel Market, By Region, Competition, Forecast & Opportunities, 2021-2031F

The India Electrical Steel Market was valued at USD 2.25 Billion in 2025, and is expected to reach USD 3. 83 Billion by 2031, rising at a CAGR of 9. 10%. Electrical steel, also referred to as silicon or transformer steel, is engineered specifically for electrical applications such as transformers, motors, and generators. It enhances magnetic flux conduction while minimizing energy loss, improving the efficiency and performance of electrical devices.

The material is typically alloyed with 1% to 3.5% silicon to increase resistivity and reduce energy dissipation through hysteresis and eddy current losses. Electrical steel is categorized into grain-oriented, ideal for transformers due to directional magnetic properties, and non-grain-oriented, which provides consistent performance in rotating machines. With India’s focus on energy efficiency, electrification, and renewable power, the demand for advanced electrical steel is poised to grow substantially across infrastructure, manufacturing, and power sectors.

Key Market Drivers

Rapid Growth in Renewable Energy Sector

India’s aggressive push toward renewable energy expansion is a major driver for the electrical steel market. The country has set a target to achieve 500 GW of renewable energy by 2030, with solar and wind projects leading the charge. These installations depend heavily on transformers and generators, where electrical steel plays a critical role in reducing energy loss and boosting performance. Its high magnetic permeability and low core loss make it ideal for efficient energy conversion in renewable systems.

Additionally, government incentives and sustainability mandates are encouraging upgrades to existing grids and the adoption of smart grid technology, both of which require modern, energy-efficient electrical components. With many renewable projects located in remote or harsh environments, there is growing demand for high-grade electrical steel that ensures reliability and durability. This momentum aligns with India’s broader climate goals and infrastructure modernization, creating sustained demand for quality electrical steel across the power generation and distribution landscape.

Key Market Challenges

High Production Costs and Dependence on Imported Raw Materials

The Indian electrical steel industry faces significant challenges due to high production costs and reliance on imported raw materials. Key inputs such as silicon and specialty alloys are not sufficiently available domestically, making manufacturers dependent on imports and susceptible to global supply fluctuations and currency risks. The production of grain-oriented electrical steel, in particular, requires advanced manufacturing processes involving precision heat treatments and cold rolling, which are capital- and energy-intensive.

Limited domestic technological capabilities have constrained competitive manufacturing, leading to increased reliance on imports or lower-quality alternatives. Additionally, high electricity tariffs in India inflate operational costs for energy-intensive production. Competing with low-cost imports from countries like China and Japan remains difficult, especially when Indian manufacturers cannot match pricing without compromising margins. These constraints hinder domestic capacity expansion and pose a long-term challenge to market growth unless strategic interventions in local sourcing, technology upgrades, and cost management are implemented.

Key Market Trends

Rising Adoption of Grain-Oriented Electrical Steel for Energy Efficiency

A growing trend in India’s electrical steel market is the rising use of grain-oriented electrical steel (GOES), driven by the increasing need for energy-efficient transformers and transmission equipment. GOES is characterized by its superior magnetic alignment, resulting in lower core losses and higher efficiency. This material is becoming the preferred choice for utilities and power infrastructure developers aiming to reduce transmission losses and enhance system reliability. The shift is further supported by government regulations and standards promoting energy conservation. The longer lifespan and reduced operational costs of equipment using GOES are encouraging its adoption across both new and retrofitted infrastructure. As India continues to modernize its grid and expand its electricity supply to meet rising demand, the role of high-performance electrical steel, particularly GOES, is becoming increasingly prominent in ensuring sustainable and efficient energy systems.

Key Market Players

• Tata Steel Limited
• JSW Steel Limited
• Jindal Steel and Power Limited
• Steel Authority of India Limited (SAIL)
• Essar Steel India Limited
• Electrosteel Steels Limited
• VISA Steel Limited
• Bhushan Steel Limited

Report Scope:

In this report, the India Electrical Steel Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

India Electrical Steel Market, By Type:

• Grain Oriented Electrical Steel
• Non-Grain Oriented Electrical Steel

India Electrical Steel Market, By Application:

• Transformers
• Motors & Generators
• Inductors

India Electrical Steel Market, By Vertical:

• Automotive
• Construction
• Manufacturing
• Energy & Power
• Others

India Electrical Steel Market, By Region:

• South India
• North India
• West India
• East India

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the India Electrical Steel Market.

Available Customizations:

With the given market data, the publisher offers customizations according to a company's specific needs. The following customization options are available for the report.

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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