Indian steel companies are in focus as the government accelerates efforts toward green steel, while also focusing on reducing import reliance and boosting exports. In FY26, crude steel production touched a record 168.4 million tonnes (MT), while finished steel consumption more than doubled to 163.7 MT from 77 MT in FY15.
The growth is driven by robust expansion in manufacturing and sustained growth in domestic demand. “This growth reflects the rapid pace of infrastructure development and expanding urbanisation. Collectively, these trends underscore the steady evolution of India’s steel sector as a key contributor to industrial growth and economic development,” the government release noted.
India retained its position as the world’s second-largest steel producer and increased its share in global crude steel production to 7.9% in 2024 from 5.2% in 2014.
India’s steel output hits record high in FY26
India’s crude steel production rose to 168.4 MT in FY26 from 152.2 MT in FY25, while finished steel production increased 9.7% year-on-year to 160.9 MT.
Finished steel consumption also grew 7.6% to 163.7 MT in FY26.
The government said construction and infrastructure remained the biggest demand drivers and accounted for around 68% of steel consumption in FY24.
Production of key raw materials and intermediate products also witnessed growth. Hot metal output increased 7.3%, pig iron production rose 6.6% and sponge iron production climbed 9.1%.
Steel export rose to 35.8%, imports fall
India’s steel exports recorded strong growth during FY26 even as imports declined significantly.
Finished steel exports rose 35.8% during the year, while imports fell 46.47%. In March 2026 alone, steel exports increased 29.1% year-on-year and imports declined 9.5%.
Vietnam, Belgium and Taiwan emerged as the top export destinations and accounted for more than half of India’s finished steel exports.
Specialty steel PLI scheme attracts Rs 44,106 crore investment commitments
The Production Linked Incentive (PLI) scheme for specialty steel, launched in 2021 with an outlay of Rs 6,322 crore, has started showing results. The scheme has attracted investment commitments worth Rs 44,106 crore under PLI 1.0 and 1.1.
So far, companies have invested Rs 23,022 crore and created 2.4 million tonnes of specialty steel production capacity. The scheme has also generated 13,264 direct jobs and helped achieve import substitution worth Rs 6,000 crore.
The government said it has disbursed Rs 236 crore as incentives under the scheme.
In November 2025, the Centre launched PLI 1.2 for specialty steel covering 85 applications across four product categories. The government signed agreements with 55 companies for 85 projects under the latest phase.
The projects are expected to bring investments worth Rs 11,887 crore and add around 8.29 MT of capacity.
Push for green steel and decarbonisation
The Centre intensified efforts to reduce carbon emissions from the steel sector.
India became the first country to launch an official Green Steel Taxonomy in 2024. Under the framework, green steel refers to steel produced with emission intensity below 2.2 tonnes of carbon dioxide equivalent per tonne of finished steel.
As of March 31, around 89 steel units received green steel certification with certified production volume reaching 12.34 MT.
The government also announced a Rs 20,000 crore outlay in Union Budget FY27 for carbon capture, utilisation and storage (CCUS) technologies over the next five years.
The Ministry of Steel formed 14 task forces in February 2025 to work on decarbonisation technologies and low-carbon steel production.
Safeguard duty, quality control measures introduced
To support domestic manufacturers, the government imposed a 12% safeguard duty on select steel flat products in April 2025.
The revised Domestically Manufactured Iron and Steel Products (DMI&SP) policy also introduced the “melt and pour” rule to ensure steel products are fully manufactured in India.
The government said Steel Quality Control Orders now cover 723 products as of December 2025.
Meanwhile, the Mission Coking Coal initiative aims to increase domestic raw coking coal production to 140 MT by FY30.
AI adoption gathers pace in steel sector
The government also highlighted growing adoption of artificial intelligence in the steel industry.
It launched the AI in Steel Pavilion to connect steel companies with AI startups and technology providers.
The initiative focuses on improving mining, logistics, production efficiency, safety standards and sustainability across the steel value chain.