Indian Economy News

Domestic Demand Drives India’s Steel Sector in H1 FY27

India’s steel sector recorded steady growth in the first half of FY27, driven by domestic demand, according to the Ministry of Steel. Finished steel consumption rose 7.6% year-on-year (YoY) to 85 million tonnes (Mt) in April–September FY27. Over the same period, crude steel production increased 2.9% to 85.1 Mt and finished steel production grew 4.1% to 82 Mt. In September 2026 alone, finished steel consumption rose 7.7% YoY to 14.4 Mt. The country’s crude steel capacity stood at 223 million tonnes per annum (Mtpa). Alloy steel production grew 32% to 5.83 Mt. Finished steel exports increased 26.2% to 3.55 Mt, with export value rising 28.9% to Rs. 28,263.7 crore (US$ 2.98 billion). The United Arab Emirates (UAE), Vietnam and Italy were the top export destinations.

The Ministry of Steel has prepared the draft National Steel Policy (Vision 2047), which targets crude steel capacity of 604 Mt, per capita consumption of 302 kg and exports of 45 Mt by 2047. The policy also aims to reduce emission intensity from 2.54 to about 1.54 tonnes of carbon dioxide per tonne of crude steel. MOIL Limited recorded its highest-ever first-half manganese ore production of 0.96 Mt, surpassing its previous record of 0.943 Mt. Under the Green Steel Initiative, 104 steel producers have been issued Green Steel Certificates up to October 2026, and most certified products have received 5-star ratings. NMDC and Steel Authority of India Limited (SAIL) have also set up subsidiaries at GIFT City. These include NMDC Global IFSC Limited, which will serve as an investment platform for overseas critical mineral projects.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.