New Delhi, Oct 6: India’s steel industry maintained its growth momentum during the first half of the financial year 2026-27, with finished steel production increasing 3.7 per cent year-on-year to 81.8 million tonnes (MT) between April and September.
The latest production figures point to continued strength in domestic industrial activity, with steel demand supported by infrastructure development, construction, manufacturing and other steel-intensive sectors.
Domestic consumption provided a particularly strong signal. Finished steel consumption rose 7.9 per cent to 84.9 MT during the first six months of FY27, compared with around 79 MT in the same period last year.
The increase reflects the growing requirement for steel across roads, railways, ports, housing, automobiles and manufacturing projects as India continues to expand its physical infrastructure.
Crude Steel Output Also Moves Higher
India’s crude steel production increased 2.9 per cent to 85.1 MT during H1 FY27, compared with 82.7 MT a year earlier.
The country’s annual crude steel capacity has also expanded significantly, reaching around 222.9 MT, strengthening India’s position as one of the world’s leading steelmaking economies.
The continued expansion of capacity is important as India seeks to meet rising domestic demand while building greater strength in its manufacturing and infrastructure ecosystem.
Steel Exports Gain Pace
Indian steel producers also recorded stronger export activity during the period.
Finished steel exports increased 26.2 per cent to 3.55 MT in April-September, compared with 2.81 MT in the corresponding period of the previous year. In value terms, exports rose around 28.9 per cent to ₹28,263.7 crore.
The improvement in exports provides an additional growth avenue for domestic producers while highlighting the increasing competitiveness of Indian steel in international markets.
Infrastructure Continues to Drive Demand
Steel consumption is closely linked to the country’s broader economic activity. Major infrastructure projects require large quantities of steel, while construction, engineering, automobiles and capital goods industries remain important sources of demand.
As public and private investment continues across these sectors, the steel industry is expected to remain an important part of India’s industrial growth story.
India’s long-term steel strategy also focuses on expanding production capacity, strengthening domestic manufacturing and encouraging the production of higher-value specialty steel.
Growth With a Focus on the Future
The next phase of expansion is likely to place greater emphasis on technology, efficiency and sustainability alongside higher production.
Steelmakers are increasingly looking at digital technologies, automation, energy-efficient processes and cleaner production methods to reduce costs and improve environmental performance.
With production, consumption and exports all showing growth in the first half of FY27, India’s steel industry is entering the second half of the financial year on a relatively strong footing.
The latest numbers reinforce the sector’s importance to India’s infrastructure ambitions, manufacturing expansion and broader push towards a stronger and more self-reliant industrial economy.