Metals are elements extracted from mineral ores and are classified into various categories, including base metals and precious metals. Base metals are those that oxidize or corrode relatively easily. Within base metals, a distinction is made between ferrous and nonferrous metals. Ferrous metals typically iron, tend to be heavy and relatively abundant. Nonferrous metals do not contain iron in significant amounts, and they are generally more expensive than ferrous metals. Nonferrous metals have desirable properties such as low weight (for example, aluminium), higher conductivity (for example, copper), nonmagnetic properties, or resistance to corrosion (for example, zinc). Metals are at the heart of the world economy because they are key intermediate inputs in industrial production and construction. There are some precious metals like gold and silver. Metal market is thus shaped by shifts in the volume and composition of global demand and supply. With India's rapid growth and development, the metal industry plays a pivotal role in fulfilling the nation's increasing infrastructure demands and supporting its evolving manufacturing sector. Among the major metals, steel, which is produced from iron ore (an important base metal), is mostly used for construction, transportation equipment, and machinery. Copper is the second-most-important base metal by value. Copper is used for construction and electrical wire. The third-most-important base metal is aluminium and it is used in the aerospace industry as well as other industries requiring light metal. Steel remains in limelight amid infrastructure boom, govt’s focus on production growth Crude steel is a raw material for other steel products. Crude steel production increased from 43.44 million tonnes (MT) in FY2004-05 to 88.98 MT in FY2014-15 and further to 168.4 MT in FY2025-26. This highlights India’s resilience and steady expansion in the global steel landscape. It also witnessed over 10 per cent rise in production during FY 2025-26 from the corresponding period of last year. The production of finished steel, which serves as a foundational material for modern infrastructure and manufacturing, stood at 160.9 MT, reflecting an increase of 9.7 per cent during FY 2025-26 over the corresponding period of the previous year. With rising output, the consumption of finished steel also remained strong at 163.7 MT, marking a 7.6 per cent growth and underscoring sustained domestic demand. 
India’s steel trade performance reflects a strengthening and increasingly competitive domestic industry. Exports of steel rose by around 29 per cent to 0.58 MT in March 2026 as compared to 0.45 MT in March 2025, while imports declined sharply by around 10 per cent to 0.52 MT in March 2026 from 0.58 MT in March 2025. This shows enhanced domestic capacity and reduced reliance on foreign supply. The positive shift underscores India’s emergence as reliable global steel supplier. It also demonstrates the country’s improved ability to meet rising domestic demand. The future of India’s steel industry is being shaped by a strong push towards low carbon and sustainable production. India has established itself as a leading exporter of iron and steel alloys. Rising exports of steel and related products contribute to higher foreign exchange earnings. Meanwhile, the Index of Industrial Production (IIP) for Infrastructure/ Construction goods for FY26 stood at 206.7 as against 188.2 in FY25, a growth of 9.83 per cent. The development of infrastructure plays a key role in enhancing the demand for steel as over half a per cent steel consumption comes from infrastructure projects and housing development in the country. The current domestic infrastructure boom provides a stable long-term baseline for steel industry. 
Copper demand being sustained by rapid growth in renewable energy installation India has very limited copper ore reserves contributing about 0.2 per cent of world copper reserves. Mining production is just 0.12 per cent of world's production, whereas refined copper production is about 2 per cent of world's production. There are three major players which dominate the copper industry in Indian markets. Hindustan Copper Ltd (HCL) in public sector, while Hindalco Industries Ltd and Sterlite Industries in private sector. HCL is the only vertically integrated copper producer in the country which produces refined copper from its own mined ore. During FY 2025-26, HCL has achieved ore production of 3.67 MT which is around 6 per cent higher than 3.47 MT in last year. Similarly, MIC (Metal in concentrate) production of 27,421 tonne has been achieved in FY 2025-26, which is 9 per cent higher than FY 2024-25. The Sale quantity achieved of 27,369 tonnes of Copper MIC during FY 2025-26 has been higher by 12 per cent over last year. 
Copper demand is likely to grow in tandem with growth in Indian economy. The growing demand from the power sector in view of Government laying thrust on renewable energy and increasing demand from the households for consumer durables will increase the demand for copper in India. Manufacturers of hybrid and electric vehicle (EV) will also augment the consumption of copper as EVs use four times more copper than traditional internal combustion engines. As on March 31, 2025, India’s total installed power generation capacity reached 475.21 gigawatt (GW), reflecting a substantial increase of 72.18 per cent from 275.99 GW of 2014-15. A major highlight of this transformation has been the rapid expansion of installed capacity under renewable energy sources, which recorded a growth of 170.69 per cent over the decade. The year 2024-25 marked a significant milestone, with annual addition of installed capacity under renewable energy sector hitting a record of 29.53 GW, far outpacing 3.72 GW added by non-renewable sources. 
Aluminium demand getting push from higher EV penetration India is a major primary aluminium producer, accounting for 6 per cent of the global aluminium production. The aluminium industry is a key player both in terms of economic output and employment generation in India’s industrial economy. India’s aluminium production reached 4.24 MT during FY 2024-25, marking 1 per cent increase over 4.19 MT in the previous year. India's total aluminium consumption, encompassing primary metal, scrap and imports, experienced substantial growth in FY 2024-25, reached 5.50 MT, 11.09 per cent growth compared to 4.95 MT in the previous fiscal year. 
The key demand drivers for aluminium in India are Auto, Power, Electronics, Railway, Aerospace, Defence, Packaging and Solar energy. The Indian aluminium demand is likely to see healthy growth with rapid urbanisation, rising per capita consumption, the growth of clean energy, and growing focus on lightweight vehicles. Further, the applications related to energy transition, such as renewable sources pertaining to photovoltaic systems and grid connectivity, and the transition toward electric vehicles (EVs), will require higher aluminium use intensity. India's electric vehicle (EV) sales rose to 2.3 million units in 2025, representing 8.04 per cent penetration of total automotive sales. EV penetration showed sustained growth over the years with supportive government frameworks. Moreover, total EV registrations in the country reached 19.7 lakh units in FY25 compared to 16.8 lakh units FY24 posting a growth of 16.9 per cent. 
Infrastructure development giving support to zinc galvanization, lead demand India’s primary lead demand grew, supported by automotive, battery, and infrastructure expansion. It is witnessing an accelerated shift toward the secondary (recycled) market, which now accounts for over 60 per cent of supply, given its cost advantage over primary metal. The removal of customs duties on lead scrap in the FY2026 budget is further driving investment in formal recycling infrastructure. Zinc plays an indispensable role in everyday life and future technologies. It enhances the durability of infrastructure through galvanisation, making it vital for long-lasting construction. Its role in enabling global energy transition has recently gained traction, supporting renewable technologies, offering safe, recyclable energy storage in zinc-based batteries. It is also used in galvanization of solar mounting structures. Lead & Zinc ore production in India increased by 1.71 per cent to 16.61 MT in FY 2025-26 from 16.33 MT in FY 2024-25. 
India is one of the world's largest consumers of lead-acid batteries, which are widely used in vehicles, inverters, UPS systems, and industrial equipment. The country's rapid expansion of telecommunications infrastructure, particularly the accelerated rollout of advanced networks across urban and rural areas, is generating substantial demand for VRLA (Valve-Regulated Lead-Acid) batteries used in telecom tower backup power systems. Operators increasingly prefer VRLA batteries for their sealed, spill-proof design, low maintenance requirements, and reliable performance in demanding outdoor conditions. Furthermore, lead is one of the most recycled consumer materials, with a recycling rate of more than 99 per cent, making it a benchmark for responsible sourcing, reuse, and life-cycle material management. This high level of recyclability supports a robust circular economy while reinforcing the long-term sustainability and resilience of the lead industry. India's infrastructure and manufacturing sectors are expanding rapidly, driving strong demand for materials that are both durable and high-performing. Zinc, owing to its exceptional corrosion resistance and ability to significantly extend the service life of steel, has become an essential material in this growth story. To meet rising demand from sectors such as highways, bridges, renewable energy, and electric vehicles, the industry is targeting a doubling of India's zinc production capacity by 2030. Significant investments are already underway, including the development of advanced smelting facilities, expansion of refining capacity, and strengthening of logistics infrastructure. Beyond reducing import dependence, this capacity expansion is expected to generate broad economic benefits by supporting industrial growth, improving supply chain resilience, and accelerating India's journey toward greater self-reliance. As infrastructure investment continues to rise, zinc is poised to play a pivotal role in enabling the country's long-term development. Rising gold prices grab investor’s interest in gold as safe-haven asset Gold is more than just a shiny metal used for jewellery. In the business world, it is considered a safe haven asset that people buy when there is uncertainty in the global economy. Most of India’s gold potential is in the southern part, especially in the state of Karnataka. Rajasthan, on the other hand, has the second-largest gold resources in the country. Meanwhile, new discoveries have recently been reported in states like Odisha, Madhya Pradesh, and Andhra Pradesh. India’s gold production is estimated at 1302 kilograms (kg) for FY 2025-26, lower than previous figure of 1627 kg for FY 2024-25. The gold production was 976 kg till December 2025 in FY 2025-26. Hutti Gold Mines Company is the top producing company in Karnataka, which is leading producer of gold. The remaining production was reported from Andhra Pradesh and Jharkhand. 
India's gold industry remained constructive despite elevated gold prices. While higher prices may moderate discretionary jewellery demand, they are strengthening gold's appeal as a store of value and hedge against economic uncertainty. Strong demand for Gold ETFs (Exchange-Traded Funds), digital gold, bars, and coins is likely to offset some weakness in jewellery consumption, while also supporting growth in gold recycling and gold loan activities. Moreover, gold's deep cultural significance in India continues to underpin demand during wedding and festive seasons. The industry remains well positioned for long-term growth, supported by rising financialization and sustained investment interest. 
Silver to benefit from electronics, renewable energy growth In India, silver has great importance in aspects of cultural, economic, and strategic, especially in Rural Areas where it is preferred over gold for savings and rituals. Although India is not in the list of major producers of silver globally but is one of the largest consumers. Although silver production is limited in India as compared to the demand, it plays a great role in mining sectors. India’s primary silver production comes from Rajasthan, with other contributions from Jharkhand and Andhra Pradesh. India production of Silver is estimated at 608306 kg for FY 2025-26, which is lower compared to 691384 kg produced in FY 2024-25. For the period from April to December of FY 2025-26, the production of silver stood at 456229 kg. Meanwhile, with growth in industrial demand in the sector of electronics, solar panel, energy storage, etc. the silver sector in India is strategically gaining importance. 
Silver demand is likely to grow, driven by its critical role in applications requiring superior electrical and thermal conductivity. The metal remains indispensable in circuit boards, microprocessors, semiconductors, smart devices, and emerging Artificial intelligence (AI) and 5G infrastructure. India's electronics production increased nearly six-fold from Rs 1.9 lakh crore in 2014-15 to Rs 11.3 lakh crore in 2024-25, while mobile phone exports surged from Rs 1,500 crore to Rs 2 lakh crore during the same period, supporting long-term industrial demand for silver. Additionally, silver paste is a key input in photovoltaic (PV) cells used in solar panels. India's renewable energy expansion is expected to further drive silver consumption, with domestic solar PV module manufacturing capacity rising from less than 20 GW in 2022 to over 109 GW as of September 2025. 
Recent developments and government initiatives Govt launches 3rd round of PLI scheme for speciality sector to attract investment in sector The government has launched the third round of Production Linked Incentive (PLI) Scheme named 'PLI 1.2' for speciality steel to attract investment in the sector, as part of its objective to boost domestic output and reduce imports. The 'PLI 1.2' is designed to accelerate India's journey towards becoming a global hub for high-grade steel production. The PLI scheme incentivises incremental production and investment in identified product categories, thereby enhancing value addition within the country and reducing import dependence in critical sectors, such as defence, power, aerospace and infrastructure. The scheme covers 22 product sub-categories, including super alloys, CRGO, alloy forgings, stainless steel (long and flat), titanium alloys, and coated steels. Govt extends safeguard duties on imports of steel products for 3 years to curb dumping The government has extended safeguard duties on imports of certain steel products for three years, aiming to curb dumping from countries like China and protect domestic manufacturers from a supply glut. The duties, first imposed as a temporary 12 per cent levy for 200 days in April 2025, will now remain in force until April 2028. The safeguard duty will be levied at 12 per cent in the first year (April 21, 2025 to April 20, 2026), reduced to 11.5 per cent in the second year (April 21, 2026 to April 20, 2027), and further lowered to 11 per cent in the third year (April 21, 2027 to April 20, 2028). The safeguard duty helps address pressures by restoring competitive balance and supporting the domestic steel value chain. India restricts import of colloidal precious metals The government has imposed import curbs on certain colloidal precious metals, with an aim to check the illegal inflow of gold into India in liquid form. Colloidal precious metals are suspensions of gold or silver nanoparticles dispersed in a liquid. Some importers were using this route for imports from countries like Thailand. The import policy of items covered under CTH 2843 is revised from free to restricted with immediate effect. Goods under this number include colloidal precious metals; inorganic or organic compounds of precious metals. Govt raises import duty on gold silver to 15 per cent to curb non-essential imports The government has hiked import duties on gold and silver to 15 per cent from 6 per cent as part of measures to curb inbound shipments of precious metals amid a rising import bill due to the West Asia crisis. Days after Prime Minister Narendra Modi's clarion call for curbs on gold purchases, along with other austerity measures to save on foreign exchange, the government has hiked the social welfare surcharge (SWS) and the agriculture infrastructure and development cess (AIDC), effective May 13. The duty hikes will raise the overall customs duty on gold to 15 per cent. Govt amends pricing norms for low-grade iron ore to check wastage boost steel supply The government has announced the amendment of rules to revise the pricing norms for low-grade iron ore, a move aimed at curbing wastage and enhancing utilisation of such reserves to ensure a steady supply to the steel industry. The move is expected to bring low-grade resources into viable use, addressing depletion of high-grade deposits and promoting mineral conservation through scientific mining practices. The amendment provides a framework for pricing iron ore with iron (Fe) content below the threshold level of 45 per cent, including Banded Haematite Quartzite (BHQ) and Banded Haematite Jasper (BHJ). Outlook The outlook for India's metal sector is likely to remain positive in coming time, supported by strong domestic consumption, sustained infrastructure development, rapid industrialization, manufacturing expansion, and favourable government policies. Continued investments in infrastructure, housing, renewable energy, EVs, and power networks are likely to drive demand across key metals, including steel, copper, aluminium, zinc, lead, gold and silver. Steel is likely to remain the primary growth engine, benefiting from infrastructure and construction activity, while copper and aluminium are poised to gain from electrification, clean energy, transportation, consumer durables, aerospace, and defence applications. Zinc and lead likely to witness steady demand from construction, galvanization and battery applications. Gold is likely to remain resilient due to its role as a store of value, increasing financialization, and enduring cultural significance. Silver is likely to witness robust demand driven by electronics, semiconductors, 5G infrastructure, artificial intelligence hardware, and solar energy, whereas zinc and lead are expected to see steady consumption from galvanization, construction, and battery applications. Despite possible short-term volatility due to global commodity prices and geopolitical developments, the Indian metals sector is likely to benefit in long-term from strong demand, rising capital expenditure, expanding exports, and the ongoing transition towards a greener, technology-driven economy.
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