India’s steel industry delivered another quarter of steady growth during the first three months of FY27, driven by increased manufacturing activity, infrastructure development, and expanding domestic demand. Fresh provisional figures released by the Joint Plant Committee (JPC) indicate that both production and consumption continued to move upward between April and June 2026, highlighting the sector’s resilience despite evolving global market conditions.
Crude steel output climbed by 3% year over year to 42.1 million metric tons, while finished steel production increased by 4.9% to 40.6 million metric tons. Domestic demand remained a major growth driver, with finished steel consumption reaching 41.6 million metric tons, representing an 8.3% annual increase. The higher consumption reflects continued activity across infrastructure projects, residential and commercial construction, and India’s expanding manufacturing base.
The country also continued strengthening its long-term production capabilities. As of June 2026, India’s crude steelmaking capacity had reached nearly 222 million metric tons annually, bringing the nation closer to its National Steel Policy objective of achieving 300 million metric tons of annual capacity by 2030. Supporting this ambition, the Bhilai Steel Plant entered into an engineering, procurement, and construction management consultancy agreement with MECON to facilitate an expansion that will increase the plant’s annual production capacity from 7 million metric tons to 10.2 million metric tons.
International trade also contributed positively to the industry’s performance. Finished steel exports surged by more than 31% compared with the same period last year, generating approximately $1.33 billion during the quarter. Steel imports reached an estimated $2.15 billion, reflecting ongoing demand for specialized products while maintaining active participation in global trade.
Several strategic initiatives further reinforced the industry’s outlook. Work advanced on India’s longest 258-kilometer slurry pipeline, designed to transport iron ore efficiently to the Bokaro Steel Plant. Meanwhile, MECON and RITES expanded their collaboration on infrastructure consultancy projects, and Steel Authority of India Limited (SAIL) partnered with Indonesia’s PT Krakatau Steel to explore opportunities in stainless steel manufacturing.
Sustainability also remained a priority. The Ministry of Steel broadened its Green Steel Initiative by awarding Green Steel Certificates to 97 producers across 15 states. The program aims to encourage environmentally responsible manufacturing practices while strengthening India’s competitiveness in international markets and supporting the industry’s long-term growth strategy.
