India's Rising Steel Output Reshapes the Global Steel Market

India's Crude Steel Output Rises 10% in 2025, Defying Global Production Decline 

NEW DELHI, India — October 13, 2026 — India’s crude steel production surged 10% in 2025 to reach 165 million tonnes and continued to expand by 6% in the January–August 2026 period, even as global output contracted, Finance Minister Nirmala Sitharaman announced at the World Steel Association's (Worldsteel) General Assembly in New Delhi. The development underscores India's accelerating prominence within the global steel market, which is projected to reach USD 1.46 trillion by 2030, growing at a CAGR of 3.8%. 

Sitharaman noted that India's share of global steel production has climbed to approximately 9%, up from 5.2% in 2014, positioning the country as the fastest-growing major steel market in the world. Finished steel consumption in India more than doubled over the past decade, reaching 164 million tonnes in FY26, with domestic consumption exceeding production for two consecutive years. 

The Finance Minister attributed the sustained demand to large-scale public infrastructure investments across railways, national highways, ports, and high-speed rail networks, which generate consistent requirements for steel across construction, transport, energy, and industrial sectors. She also called on Worldsteel to consider establishing an office in India, reflecting the country's growing strategic weight in the global industry. 

Sitharaman further highlighted the role of decarbonisation in shaping the sector's future, pointing to small modular reactors under India's Nuclear Energy Mission as a potential source of reliable, low-carbon electricity for the steel industry. Expanding scrap-based steelmaking powered by renewable energy was identified as an immediate operational priority. 

Key Highlights: 

• India's crude steel output reached 165 million tonnes in 2025, a 10% year-on-year increase, with a further 6% rise recorded in January–August 2026, even as global production declined. 

• India's share of world steel production has grown to approximately 9%, up from 5.2% in 2014, making it the fastest-growing major steel market globally. 

• Finished steel consumption in India surpassed 164 million tonnes in FY26, exceeding domestic production for the second consecutive year, driven by sustained infrastructure spending. 

• The Finance Minister outlined a strategic roadmap encompassing raw-material security, specialty steel manufacturing, green steel frameworks, and scrap-based steelmaking powered by renewable electricity. 

Analyst Insight: 

According to analysts at Next Move Strategy Consulting, India's consistent output growth amid a global production downturn signals a structural shift in the geographic distribution of steel manufacturing capacity. NMSC analysts note that with the global steel market projected to expand from USD 1.16 trillion in 2024 to USD 1.46 trillion by 2030 at a CAGR of 3.8%, India's trajectory underpinned by government-led infrastructure investment and a formal green steel policy framework positions it as a critical driver of long-term market growth, particularly as mature economies grapple with decarbonisation costs and demand stagnation. 

Industry Outlook: 

India's expanding steel output, combined with a domestic consumption base that has consistently outpaced production, reflects a market dynamic that is increasingly self-reinforcing. As the government continues to channel capital into infrastructure development and simultaneously advances a green steel transition including scrap-based electric arc furnace steelmaking and low-carbon energy integration the country is expected to consolidate its position as the world's second-largest steel producer and a key determinant of global supply-demand equilibria. 

The invitation extended to Worldsteel to establish an Indian office further signals institutional recognition of India's centrality to the industry's future. For global steel producers and investors, India's policy environment and consumption trajectory represent a significant area of strategic focus in the years ahead. 

Source: The Economic Times 

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Prepared By: Sanyukta Deb