India's crude steel production surged 10.7% in FY26, reaching 168.4 million tonnes. Exports jumped 35.9% while imports fell, re-establishing India as a net steel exporter. Domestic demand also saw robust growth, driven by infrastructure.
The Ministry of Steel on Wednesday said that India's crude steel production increased by 10.7% on year to around 168.4 million tonnes during the Financial Year 2025-26.
Exports Surge, Imports Decline
The Ministry highlighted exports of steel and said finished steel exports surged by 35.9%, reaching over 6 million tonnes during April-March (6.6 MnT), while imports declined sharply by 31.7%. "This shift enabled India to regain its position as a net exporter of steel, strengthening its footprint in global markets such as the Middle East, Europe, and Southeast Asia. The growth in exports was also supported by diversification of markets and improved competitiveness of Indian steel products," the Ministry said in its press release.
Domestic Demand Drives Growth
"Domestic demand remained the key growth driver with finished steel consumption of 164 million tonnes, expanding by about 7-8%, driven and supported by increased activity in infrastructure, construction, railways, and manufacturing sectors. The government's continued push on large-scale infrastructure projects and urbanisation played a pivotal role in boosting steel consumption during the period," the Ministry said in a press release.
Capacity Expansion and Investments
According to the Ministry, the industry witnessed continued investments aimed at expanding production capacity. India's total steel capacity is about 220 million tonnes in FY 2025 - 26 and is projected to reach 300 million tonnes by 2030, supported by both public and private sector investments. Major players such as SAIL, Tata Steel and JSW Steel continued to invest in capacity expansion, technology upgrades, and value-added steel production, reflecting confidence in long-term demand growth.
Steel Prices and Profitability
On steel prices and margins, Steel prices in India followed a downward trend over the past three years before recovering in early 2026. However, profitability remained under pressure due to fluctuating raw material costs, especially coking coal, and volatile global prices. Increased logistics and freight costs also affected margins towards the end of the year due to the geopolitical crisis.
Future Outlook
The Steel Ministry said that the Indian steel industry is expected to maintain its growth momentum, with production projected to rise further and demand remaining robust. However, the sector will need to navigate challenges related to energy security, input costs, and global market volatility. (ANI)
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