Indian Economy News

Indian Steel Industry Shows Strong Growth Amid Emerging Challenges in 2025-26

India’s steel industry recorded a robust performance in 2025–26, reinforcing its position as the world’s second-largest producer amid global uncertainties. Crude steel production grew by over 10.7% year-on-year to approximately 168.4 million tonnes, reflecting strong industrial momentum. Domestic demand remained the primary growth driver, with finished steel consumption reaching 164 million tonnes, expanding by around 7-8%. This growth was supported by increased activity across infrastructure, construction, railways, and manufacturing sectors, backed by the government’s continued focus on large-scale infrastructure development and urbanisation.

A key highlight of the year was the strong export performance, with finished steel exports rising by 35.9% to over 6 million tonnes (6.6 MnT), while imports declined by 31.7%, enabling India to regain its status as a net exporter. The industry also witnessed sustained investment momentum, with total steel capacity reaching about 220 million tonnes and projected to expand to 300 million tonnes by 2030. Major players continued investing in capacity expansion and technology upgrades, signalling confidence in long-term demand. However, profitability remained under pressure due to fluctuating raw material costs, rising logistics expenses, and global price volatility. Additionally, energy supply disruptions, particularly gas shortages from the Middle East, posed operational challenges, prompting government intervention to ensure continuity.

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