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 (April-July 2025), crude steel production stood at 54.19 MT and finished steel production at 51.46 MT, while finished steel consumption reached 51.45 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 FY25, India’s steel production capacity had increased to 200.33 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 (April-July 2025), steel exports and imports stood nearly balanced at 1.7 MT and 1.67 MT, compared with 4.85 MT and 9.53 MT respectively in FY25. The top five exported products during FY26 (April-July) were GP/GC sheets and coils, HR coils/strips, pipes, bars & rods, and CR coils/sheets. Domestic steel demand is projected to grow 9-10% in 2025, according to ICRA.
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.
Looking back, FY24 and FY23 also witnessed major developments. In February 2024, JSW announced a US$ 7.8 billion (Rs. 65,000 crore) investment for a 13.2 MT steel plant in Odisha, expected to create 30,000 jobs, along with a US$ 661.9 million (Rs. 5,500 crore) joint venture with JFE Steel in Karnataka. Earlier, in January 2024, Mr. Lakshmi Mittal announced plans for the world’s largest steel manufacturing site in Gujarat by 2029. AM/NS India has also committed US$ 7.4 billion towards capacity expansion and value-added steel production.
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.
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
