Indian Economy News

India's Steel Sector Maintains Growth Momentum in Q1 FY27

India's steel industry sustained its growth momentum during the first quarter of FY27, supported by higher production, rising domestic consumption and continued capacity expansion. According to provisional data released by the Joint Plant Committee (JPC), crude steel production increased 3.0% year-on-year to 42.1 million tonnes (MT) during April-June 2026, while finished steel production grew 4.9% to 40.6 MT. Finished steel consumption rose 8.3% to 41.6 MT, reflecting robust demand from infrastructure, construction and manufacturing sectors. India's crude steelmaking capacity reached approximately 222 million tonnes per annum (MTPA) as of June 2026, moving closer to the National Steel Policy target of 300 MTPA by 2030. The quarter also witnessed continued progress in capacity expansion, with the Bhilai Steel Plant signing an engineering, procurement and construction management consultancy agreement with MECON to support its expansion from 7 MTPA to 10.2 MTPA.

The sector also recorded strong trade activity, with finished steel exports increasing 31.4% year-on-year to 1.59 MT, valued at Rs. 12,475.2 crore (US$ 1.33 billion) during April-June 2026, while imports stood at 2.06 MT, valued at Rs. 20,214.5 crore (US$ 2.15 billion). Policy and industry initiatives further strengthened the sector, including the development of India's longest 258-km slurry pipeline to supply iron ore to the Bokaro Steel Plant, a strategic partnership between MECON and RITES for infrastructure consultancy projects, and SAIL's collaboration with PT Krakatau Steel to explore stainless steel manufacturing in Indonesia. The Ministry of Steel also expanded its Green Steel Initiative, with 97 producers across 15 states receiving Green Steel Certificates, reinforcing India's commitment to sustainable manufacturing while enhancing global competitiveness, exports and long-term industrial growth.

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