In a major boost to India’s industrial transformation, Union Minister for Steel and Heavy Industries H.D. Kumaraswamy launched the third round — PLI 1.2 — of the Production Linked Incentive (PLI) Scheme for Specialty Steel on November 4, 2025. The scheme, aimed at driving innovation, export-led growth, and job creation, marks the next chapter in India’s ambition to become a global leader in high-grade steel manufacturing and self-reliance under Atmanirbhar Bharat.
Calling it a “shining pillar” of India’s industrial progress, the Minister emphasized that the initiative reinforces India’s determination to move beyond commodity production and toward value-added, high-performance materials critical for defence, aerospace, automotive, and infrastructure sectors.
Massive Investments, Measurable Impact
The PLI Scheme for Specialty Steel, approved in July 2021 with an outlay of ₹6,322 crore, has already attracted investment commitments worth ₹43,874 crore, generating over 30,000 direct jobs. As of September 2025, ₹22,973 crore has been invested and 13,284 jobs created, with expectations of exponential growth in the next phase.
Under PLI 1.2, the government aims to further stimulate domestic and foreign investments in new steel categories such as super alloys, CRGO steel, stainless steel long and flat products, coated steels, and titanium alloys. These materials are essential for next-generation industrial applications, enabling India to supply advanced-grade steel to both domestic and international markets.
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Boosting MSMEs and Global Value Chains
The new phase also opens opportunities for MSMEs and small producers who modernized under earlier rounds. By integrating these enterprises into larger value chains, the government seeks to make India a major supplier of specialty steels globally while enhancing domestic capacity to meet strategic sectoral needs.
“PLI 1.2 is designed to accelerate India’s journey toward becoming a global hub for high-grade steel production,” Kumaraswamy said, adding that the scheme aligns with Viksit Bharat 2047 and India’s Net Zero 2070 targets through the promotion of low-emission, energy-efficient production methods.
A Foundation for Sustainable Industrial Growth
With India now among the world’s largest steel producers, the new phase of PLI underscores a crucial shift toward innovation-driven and sustainable industrial growth. Officials expect the initiative to generate thousands of new jobs, boost exports, and encourage the adoption of green manufacturing technologies.
“Through this initiative, we aim not just to produce steel for India, but to supply the world from India,” Kumaraswamy remarked. “The story of Indian steel is the story of India’s progress — from aspiration to achievement.”