By S. JHA
Latest Rubix Industry Insights: Iron and Steel Report for June 2026 says India’s steel industry recorded robust growth in FY26 with crude steel production at 169 million tonnes and consumption at 164 million tonnes.
Mumbai, June 23, 2026 — India’s steel industry is emerging as one of the country’s most promising sunrise sectors, powered by strong domestic demand, government-backed expansion plans, and an accelerating transition toward green steel production, according to the latest Rubix Industry Insights: Iron and Steel Report for June 2026.
The report paints a picture of an industry that has steadily strengthened its global position over the past decade. India is now the world’s second-largest producer of crude steel and the second-largest consumer of finished steel, while also retaining its position as the largest producer of sponge iron.
India’s crude steel production reached approximately 169 million tonnes in FY2026, recording an 8.9 percent compound annual growth rate (CAGR) since FY2022. Finished steel production touched 162 million tonnes, while consumption climbed to 164 million tonnes, reflecting an even stronger CAGR of 11.6 percent during the period.
The report notes that domestic steel demand is now growing faster than supply additions. “Finished steel consumption expanded from 106 million tonnes in FY2022 to 164 million tonnes in FY2026,” highlighting the growing steel intensity of India’s economy and the impact of infrastructure and manufacturing investments.
A significant shift has occurred in the industry’s trade dynamics. India was a net importer of finished steel in FY2024 and FY2025 before returning to a marginal net-export position in FY2026. However, strong domestic demand continues to exert pressure on supplies, indicating the need for further capacity expansion and import substitution in higher-grade steel products.
The report also underscores the growing role of small and medium enterprises (SMEs), which account for nearly 47 percent of India’s steel production through around 2,200 units. These firms are expected to play a crucial role in meeting future demand as the sector expands.
One of the most notable developments is India’s push toward sustainable steelmaking. The country became the first nation to introduce a formal Green Steel Taxonomy in 2024. According to the report, the framework classifies steel based on carbon emission intensity and is designed to accelerate industry-wide decarbonisation.
The report states that India is targeting crude steel capacity of 300 million tonnes by 2030-31, 400 million tonnes by 2035-36, and 500 million tonnes by 2047. Government initiatives, including the Production Linked Incentive (PLI) scheme for specialty steel, the National Steel Policy, and green hydrogen projects, are expected to support this expansion.
Quoting Steel Secretary Sandeep Poundrik, the report said: “There is a strong need for India to achieve self-reliance in the steel sector,” emphasizing the strategic importance of securing domestic raw material supplies and strengthening the industry’s long-term competitiveness.
With rising infrastructure spending, urbanisation, renewable energy projects, and manufacturing growth, the report concludes that India’s steel sector remains on a strong growth trajectory, with substantial headroom for further expansion in the coming decades.
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