SAIL, Tata and JSW expanding capacity, says Ministry
India’s crude steel output continued its upward trajectory in 2025–26, growing by over 10.7% year-on-year to around 168.4 million tonnes during April–March, reflecting sustained industrial momentum, the Steel Ministry said on 8 Apr.
Domestic demand remained the key growth driver with finished steel consumption (164 million tonnes), expanding by about 7–8%, driven 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.
Capacity Expansion and Investment Momentum
The industry witnessed continued investments aimed at expanding production capacity. India’s total steel capacity, at 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.
Stable Prices but Margin Pressures
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 geo-political crisis.
Looking ahead, 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.
With continued policy support, infrastructure expansion, and investments in green steel technologies, the industry is well-positioned to remain a key pillar of India’s industrial and economic development, the Ministry said. fiinews.com
