India’s steel industry is growing rapidly. Its capacity reached 205 million tonnes per year in fiscal 2025, up 10% from 186 million tonnes in 2024. Over the past decade, this figure has almost doubled from 109 million tonnes in 2015. BigMint notes that this growth reflects active government investment in the country’s economic development, urbanization and infrastructure.

The steel sector is expanding in both the public and private sectors. Major producers such as JSW, Tata Steel and SAIL have significantly increased their capacity to meet growing demand. Cumulative capacity expansion is estimated at 13 million tonnes in 2025, and companies such as JSPL and AM/NS India have ambitious plans for further growth.

Traditional steel production is also experiencing a significant recovery, with blast furnace capacity growing by 17% year-on-year (to 88.5 million tonnes), induction furnace capacity by 9% (to 74 million tonnes) and electric arc furnace capacity remaining stable (43 million tonnes). Overall, the country’s steel production in 2025 increased by 6% year-on-year to reach 152 million tonnes.

However, rapid growth in domestic capacity could outstrip consumption, creating oversupply, low prices and low margins for producers. In addition, export prospects are complicated by global trade policy.

As GMK Centre had earlier reported, India’s steel production rose by 5.2% to 138.21 million tonnes in the 11 months of the 2024/2025 financial year (April 2024 – February 2025). Rolled steel production rose by 5% to 132.89 million tonnes, while domestic consumption rose by 11.3% to 137.82 million tonnes. Exports of finished steel products fell by 33.7% to 4.4 million tonnes, while imports rose by 15.8% to 8.98 million tonnes.