Steel

India is the world’s second-largest producer of crude steel, with an output of 151.14 MT of crude steel and 145.30 MT of finished steel in FY25. In FY26, crude steel production in India stood at 168.4 MT and finished steel production at 160.90 MT, while the consumption of finished steel reached 163.7 MT. For FY25, consumption stood higher at 150.23 MT. The per-capita consumption of steel touched 100 kgs in FY26 (April-August 2025), with the National Steel Policy targeting 160 kgs by FY31.

As of FY26, India’s steel production capacity had increased to 220.00 MT and is projected to reach 300 MT by FY30. Secondary steel plants, including MSMEs, accounted for 47% of crude steel capacity in FY25. India also holds vast iron ore reserves, with the potential to produce 700 MT annually, making it the second-largest producer globally. In FY26, steel trade remained favourable, with India emerging as a net exporter of finished steel, recording a trade surplus of 0.08 MT, compared with a net import position in FY25. The top five exported products during FY26 were HR coils/strips, pipes, GP/GC sheets and coils, bars & rods, and CR coils/sheets, with HR coils/strips emerging as the leading export category, while GP/GC sheets and coils recorded a decline in exports.

On May 5, 2026, the Government of India highlighted strong progress in the steel sector, driven by record production, rising exports, lower imports, capacity expansion and robust domestic demand, reinforcing India's emergence as a globally competitive steel producer.

In January 2026, it was reported that India will host Bharat Steel 2026 in New Delhi, highlighting the country’s growing focus on green steelmaking, resilient supply chains, and advanced technologies. The event is expected to attract global industry leaders and investors, reflecting strong international interest in India’s steel sector. This development underscores the sector’s positive outlook, supported by rising demand, sustainability initiatives, and ambitious capacity expansion targets, positioning India as a key global steel producer.

On December 8, 2025, India’s bullet train project is significantly boosting the steel industry through large-scale infrastructure development. The project involves the construction of massive steel bridges and complex tunnel systems, highlighting increased demand for advanced steel and engineering capabilities. These developments reflect India’s push toward world-class infrastructure, with steel playing a crucial role in enabling high-speed rail, smart city integration, and modern transport networks positioning the country for accelerated industrial and technological growth.

In November 2025, India’s steel sector entered a strong growth phase, with demand expected to rise by around 9% in 2025-26, driven by robust infrastructure development, construction activity and expanding manufacturing. Increasing investments, government-led projects and rising consumption across sectors are positioning India as one of the fastest-growing steel markets globally, indicating a positive outlook with sustained momentum and new growth opportunities for the industry.

On August 18, 2025, JSW Steel and South Korea’s POSCO signed a non-binding Heads of Agreement to explore a 6 MTPA integrated steel plant in India through a 50:50 joint venture, with Odisha among the locations under study. In August 2025, JSW Steel and Japan’s JFE Steel announced plans to jointly invest Rs. 5,845 crore (US$ 682 million) to expand cold-rolled grain-oriented electrical steel (CRGO) capacity to 3,50,000 TPA by FY28, scaling up operations at Nashik and Vijayanagar. Earlier, on July 7, 2025, Tata Steel signed an MoU with Australia’s InQuik Group to bring modular bridge construction technology to India, enabling cost-effective and climate-resilient infrastructure.

In February 2025, the Bengal Global Business Summit saw nearly 50% of Jharkhand’s Rs. 26,000 crore (US$ 3.02 billion) investment proposals directed towards steel. Around the same time, JSW Group unveiled a massive Rs. 1,00,000 crore (US$ 11.60 billion) investment to set up a 25 MT steel plant in Gadchiroli, Maharashtra, expected to be the world’s largest and most eco-friendly steel facility. On March 28, 2025, AM/NS India secured 890 hectares of land in Andhra Pradesh for a 7 MTPA integrated steel mill to meet rising domestic demand. India and Japan also held their third Steel Dialogue in February 2025, highlighting green steel efforts, policy initiatives, and trade opportunities.

Government support continues to be a cornerstone for growth. The National Steel Policy 2017 aims to raise per-capita steel consumption to 160 kgs by FY31 and promotes at least 15% value addition in notified products. The PLI scheme for specialty steel, in its second round, has secured commitments of Rs. 17,000 crore (US$ 1.98 billion) from 25 companies, targeting high-end steel applications in automobiles, transformers, and other sectors. The sector benefits further from the new Vehicle Scrappage Policy, which will increase scrap availability and stabilize prices. Between April 2000 and June 2025, Indian metallurgical industries attracted Rs. 1,60,000 crore (US$ 18.67 billion) in FDI, supported by 100% FDI allowance under the automatic route.

In November 2025, India’s Ministry of Steel launched the third round of the PLI Scheme for Specialty Steel (PLI 1.2) to attract new investment in advanced steel products with incentives of 4% to 15% on incremental sales and broaden high-end steel capacity to support domestic manufacturing and global competitiveness.

India’s steel industry stands at the forefront of industrial transformation, supported by strong domestic demand, global collaborations, and forward-looking policy initiatives. With large-scale investments, growing exports, and an expanding production base, the sector is poised to achieve its ambitious targets under the National Steel Policy. Continued focus on green technologies, value-added products, and infrastructure development will further enhance competitiveness and sustainability. Looking ahead, India is set to emerge as a global steel powerhouse, driving innovation, job creation, and resilient economic growth in the coming decade.

Note: kg - kilograms, TPA - Tonnes Per Annum, MT - Million Tonnes