India’s crude steel production continues its robust growth in FY 2025-26, with capacity expansion and increased domestic demand driving the sector towards its 2030 targets, while state-run SAIL unveils ambitious capacity plans.
India’s crude steel industry continued to expand in FY 2025-26, with output rising to 170.15 million tonnes from 144.30 million tonnes in FY 2023-24, according to a government statement placed before the Rajya Sabha. Capacity also climbed to 220.41 million tonnes, underscoring the sector’s steady long-term build-out even as utilisation eased slightly over the same period.
The Ministry of Steel said the National Steel Policy, 2017 still sets a target of 300 million tonnes of crude steel capacity and 255 million tonnes of crude steel production by 2030-31. Over the past three years, capacity increased from 179.51 million tonnes to 220.41 million tonnes, while utilisation fell from 80.4% to 77.2%. Per-capita finished steel consumption also rose, moving from 97.7 kg to 115.7 kg, reflecting firmer domestic demand.
State-run Steel Authority of India Ltd. has approved a major expansion programme that would lift its crude steel capacity from about 20 million tonnes to 35 million tonnes by FY 2030-31. The planned increase spans plants in Chhattisgarh, West Bengal, Odisha and Jharkhand, and comes as the company steps up investment across its network, including work at the IISCO and Durgapur plants, according to industry reporting. Separately, one company source told The Economic Times that SAIL is considering capital spending of Rs 7,500 crore in the current fiscal year.
The government said it is keeping the sector deregulated, with investment decisions left to companies on techno-commercial grounds, while it focuses on policy support to cut import dependence and attract capital. That support includes the Production Linked Incentive scheme for specialty steel and the Domestically Manufactured Iron & Steel Products policy, which aims to favour local procurement. Industry data from the India Brand Equity Foundation also points to strong momentum in 2025-26, including rising exports, lower imports and India’s position as the world’s second-largest crude steel producer.
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