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India's Steel Output Soars 10.7%, Regains Net Exporter Status in FY26

India's crude steel production increased by 10.7% year-on-year to approximately 168.4 million tonnes in the 2025-26 financial year. The country regained its status as a net steel exporter as exports surged by 35.9% while imports declined sharply by 31.7%. Domestic consumption grew 7-8%, driven by strong activity in infrastructure, construction, and manufacturing sectors. The industry continues to invest in capacity expansion, aiming to reach 300 million tonnes by 2030, though profitability faces pressure from volatile raw material costs.

Key Points: India's Crude Steel Production Rises 10.7% in FY 2025-26

  • 10.7% YoY crude steel production growth
  • 35.9% surge in finished steel exports
  • Sharp 31.7% decline in steel imports
  • Robust domestic demand driven by infrastructure
2 min read

India's crude steel output rose 10.7% YoY to 168.4 MT in FY 2025-26: Ministry of Steel

India's crude steel output hit 168.4 MT in FY26, with exports surging 35.9% and imports falling 31.7%, making India a net exporter again.

"This shift enabled India to regain its position as a net exporter of steel - Ministry of Steel"

New Delhi, April 8

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.

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 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.

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.

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.

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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Reader Comments

P
Priya S
Great to see exports surging by 35.9%! Diversifying into Europe and Middle East markets is key for long-term stability. However, the article mentions pressure on margins due to raw material costs. Hope the government has a plan to secure coking coal supplies to protect profitability.
R
Rohit P
Domestic consumption at 164 MT driven by infrastructure and construction is the real story. Every new highway, metro, and airport project uses steel. This growth creates a massive ripple effect in the economy. Solid performance!
S
Sarah B
Projected capacity of 300 MT by 2030 is an ambitious target. While the investment by Tata, JSW is encouraging, we must ensure this expansion is green and sustainable. The energy security challenge mentioned is critical. Can't grow at the cost of the environment.
V
Vikram M
Becoming a net exporter is a big achievement. But with global volatility, we need to be cautious. The dip in imports by 31.7% is good, but are we producing enough of the special-grade steel that we still import for advanced manufacturing? Quality matters as much as quantity.
K
Karthik V
As someone in manufacturing, steady and affordable steel supply is crucial. The price recovery in early 2026 is a relief, but the volatility hurts small and medium enterprises the most. Hope the growth leads to more stable pricing for end-users.

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