India’s steel sector delivered a solid performance in 2025–26, maintaining its position as the world’s second-largest producer despite a challenging global environment. Crude steel output increased by more than 10.7% year-over-year, reaching approximately 168.4 million tonnes, reflecting sustained industrial momentum. Domestic consumption remained the backbone of this growth, with finished steel usage climbing to nearly 164 million tonnes, marking an expansion of about 7–8%.
This upward trend was largely fueled by strong demand across key sectors such as infrastructure, construction, railways, and manufacturing. Continued government investment in large-scale infrastructure projects and urban development initiatives further supported this growth trajectory.
Exports emerged as a major highlight during the year, with finished steel shipments rising by 35.9% to over 6 million tonnes. At the same time, imports dropped significantly by 31.7%, allowing India to reestablish itself as a net exporter of steel. This shift underscores the competitiveness of Indian steel in global markets.
The industry also saw consistent investment activity, with total production capacity reaching around 220 million tonnes. Looking ahead, capacity is projected to expand to nearly 300 million tonnes by 2030. Leading steel manufacturers continue to invest in expanding facilities and adopting advanced technologies, signaling strong confidence in long-term demand and sectoral growth.
However, profitability faced pressure due to fluctuating raw material prices, increasing logistics costs, and ongoing volatility in global steel markets. Operational challenges were further intensified by disruptions in energy supply, particularly gas shortages linked to the Middle East. These issues prompted government intervention to stabilize supply and ensure uninterrupted production.
Overall, while India’s steel industry demonstrated resilience and strong growth in 2025–26, it must navigate cost pressures and supply-side challenges to sustain its upward momentum in the coming years.
