India’s steel industry continues to expand in FY 2025-26 and become the world’s second-largest steel producer amid global uncertainty, cost pressures, and supply disruptions.
Crude steel production increased by over 10.7% every year to around 168.4 million tonnes, supported by strong domestic demand. Finished steel consumption reached 164 million tonnes, growing by 7-8%. According to the Ministry of Steel, increased activity across infrastructure, construction, railways, and manufacturing is the major demand driver across regions.
Exports also showed great improvement. Finished steel exports rose by 35.9% to about 6.6 million tonnes, while imports dropped by 31.7%. This shift helped India regain its position as a net steel exporter and expand its market in Europe, the Middle East, and Southeast Asia.
Steel in Motion: Growth, Grit, and The Road to 300M Tonnes
Major players, like SAIL, Tata Steel, and JSW Steel, continue to boost volume and upgrade technology. India’s steelmaking capacity reached about 220 million tonnes in FY 2025-26 and is expected to grow to 300 million tonnes by 2030. These ongoing investments signal long-term confidence in demand growth.
However, profitability remained under pressure due to fluctuating raw material costs, particularly coking coal, and rising logistics expenses. Gas supply disruptions from the Middle East also created energy challenges. Despite these challenges, strong domestic demand and infrastructure growth are expected to keep the industry on a steady growth path.
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