- Crude steel output rises by 11% y-o-y in FY’26
- Demand grows 7% but outlook remains strong
India stands at the centre of the global steel growth story, supported by infrastructure expansion, rapid industrialisation, and manufacturing-led growth. The country has emerged as one of the most dynamic steel markets, with crude steel production reaching 168 million tonnes (mnt) in FY’26, up 11% y-o-y. This reflects sustained capacity additions and stable utilisation, reinforcing India’s position as the world’s second-largest steel producer and its ambition to scale capacity to 300 mnt by 2030 and 400 mnt by 2035.
Demand growth lags in FY’26 but outlook remains strong
Demand growth, however, has lagged supply expansion in FY’26. Steel consumption rose 7% y-o-y to 162 mnt in FY’26, indicating slower absorption of incremental capacity. Despite this, the medium-term outlook remains robust. According to the World Steel Association’s October 2025 projections, India’s steel demand is expected to grow by around 9% in CY’26, supported by broad-based expansion across construction, manufacturing, and infrastructure sectors. By CY’26, total demand is projected to be nearly 75 mnt higher than in CY’20.
Iron ore supply strength facilitates steel industry growth
Rich iron ore reserves have played a critical role in enabling this expansion. India’s iron ore output increased nearly 50% to 307 mnt in FY’26 from 204.5 mnt in FY’21, reflecting steady growth in domestic mining capacity. This has strengthened the supply base for steelmakers, supporting higher utilisation rates and facilitating production growth. However, metallurgical coal remains a structural constraint, with imports rising 9% y-o-y to 84 mnt due to limited domestic availability.
Capacity pipeline signals broad-based expansion
Despite this, the next phase of growth is becoming broader, with capacity additions spanning both long and flat steel segments. BigMint data shows that nearly 50 mnt of crude steel capacity was cleared for development (under the environmental clearance and consent-to-establish pipeline) in FY’26 until February. Approvals include 16 mnt of flat steel capacity, including hot-rolled coils and plate, compared with 22 mnt of long products.
The data indicates that while long steel continues to dominate, with infrastructure and construction anchoring steel consumption, flat steel has also emerged as a significant component of the expansion pipeline. This reflects rising alignment with manufacturing, automotive, and downstream processing sectors. The implication is that India’s steel sector is gradually moving beyond construction-driven demand towards a more manufacturing-oriented growth model.
Bharat Steel to spotlight growing role of India’s steel industry
As India advances toward its $5 trillion economic ambition, the steel sector will continue to play a central role in shaping a resilient and globally competitive industrial base. Against this backdrop, Bharat Steel 2026 is positioned as a key platform to align industry stakeholders with the next phase of growth.
Organised by the Ministry of Steel, the conference will be held on 16-17 April 2026 at Bharat Mandapam, bringing together global industry leaders, policymakers, technology providers and investors. The event comes at a time when India’s steel industry is navigating a complex landscape of capacity expansion, evolving demand patterns and global market uncertainties.
“It will be an important industry gathering to discuss critical aspects of the global steel supply chain including the impact of tariffs, trade policies, technology disruptions, raw material security and logistics infrastructure,” said Sandeep Poundrik, Secretary, Ministry of Steel, Government of India.
As India strengthens its position as a major steel producer and consumption hub, Bharat Steel 2026 is set to provide a timely opportunity for stakeholders to engage, collaborate, and shape the next phase of industry growth.
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