India is Betting Big on Steel and Winning!

India is betting big on steel, and the gamble is paying off.

More than just a metal, steel is the backbone of economic progress as it is both a raw material and an essential intermediary.

From highways and railways to skyscrapers and cars, it powers modern civilisation, and for India, it has become central to its growth story.

The country today stands as the world’s second-largest producer of crude steel, recording 152 million tonnes (MT) in FY25, after China’s 955 MT.

This sector contributes around 2% of India’s GDP and is the second-largest consumer of steel after China.

The momentum has been building steadily over the past decade.

Production has surged by 75% since 2008, while domestic demand has grown by nearly 80% in 10 years.

Looking ahead, annual output is expected to cross 300 MT by 2030-31, with crude steel capacity projected at 255 MT and finished steel at 230 MT.

Deloitte further estimates demand to rise by 5-7.3% annually over the next decade.

This rapid expansion has also caught the eye of global investors.

Between April 2000 and December 2024, metallurgical industries in India attracted foreign direct investment worth ₹1.12 lakh crore (US$18.32 billion), according to DPIIT.

But global steel markets are facing turbulence.

50% US import tariffs and similar curbs elsewhere have left excess supply flooding Asian markets.

To protect domestic players, India is mulling a three-year import tariff of 11-12% on certain steel products, aiming to curb Chinese inflows.

These safeguards are intended not just to protect Indian manufacturers today but also to shield them from potential shocks in the future.

Policy support has been equally strong.

Under the Production Linked Incentive (PLI) scheme for speciality steel, 25 companies have pledged ₹17,000 crore to build high-end capacity within the country, reducing import reliance and fuelling self-reliance across key product categories.

Amid this backdrop, industry leaders are stepping up their game.

Tata Steel, with a global footprint and an annual crude steel capacity of around 35 MTPA, has been a key driver of India’s steel growth.

In Q1 FY26, the company recorded ₹53,178 crore revenue and ₹2,007 crore profit, compared to ₹54,771 crore revenue and ₹919 crore profit in Q1 FY25.

JSW Steel has also grown over three decades into a 35.7 MTPA giant across India and the US. In Q1 FY26, the company reported ₹43,147 crore revenue and ₹2,209 crore profit, compared to ₹42,943 crore revenue and ₹867 crore profit in Q1 FY25.

Meanwhile, Steel Authority of India (SAIL), with a capacity of 20.30 MTPA, recorded ₹25,922 crore revenue and ₹745 crore profit in Q1 FY26, up from ₹23,998 crore revenue and ₹82 crore profit in Q1 FY25.

Jindal Steel, operating 9.6 MTPA, reported ₹12,325 crore revenue and ₹1,496 crore profit in Q1 FY26, compared to ₹13,652 crore revenue and ₹1,338 crore profit in Q1 FY25.

India’s steel sector, thus, is reshaping the country’s industrial landscape.

With rising demand, foreign investments, government backing, and bets by domestic giants, steel is fast becoming the metal that defines India’s economic future.

Sources:

IBEF
JPC Indian Steel
World Steel Dynamics
JSW Steel
Government of India Reuters
TATA Steel
BSE
JSW Steel
BSE
The New Indian Express
BSE
Jindal Steel
BSE