India steel output rises 4% in April-July 2025; consumption jumps 7.8%
Synopsis
India's steel sector is firing on multiple cylinders — output up 4%, consumption up nearly 8%, and exports surging 35% in just four months. With SAIL's profit more than doubling and a new defence-grade steel technology licence in hand, the sector is moving well beyond commodity production toward strategic industrial capability.
Key Takeaways
Finished steel production rose 4 per cent to 54.3 million tonnes in April-July of the current financial year.
Domestic consumption surged 7.8 per cent to 55.9 million tonnes , driven by government infrastructure projects in highways, railways, and ports.
Steel exports jumped 35 per cent by volume to 22,92,300 tonnes and 29.4 per cent by value to ₹18,105.4 crore .
SAIL posted a 138 per cent year-on-year rise in net profit to ₹1,636 crore in Q1 FY 2026-27.
India's crude steelmaking capacity stands at 222 million tonnes per annum , on track for the 300 MTPA target by 2030 .
SAIL's new Micro Pellet Plant at Rourkela will recycle steelmaking waste into value-added micro pellets at 0.18 MTPA capacity.
India's finished steel production climbed to 54.3 million tonnes during April-July of the current financial year, marking a 4 per cent rise over the 52.2 million tonnes recorded in the same four-month period last year, according to data released by the Ministry of Steel on 6 August. The numbers reflect sustained momentum across both output and demand, driven by large-scale government infrastructure spending.
Consumption Outpaces Production
Domestic consumption of finished steel grew at a sharper pace than production, surging 7.8 per cent to 55.9 million tonnes in April-July, up from 51.9 million tonnes in the year-ago period. The Ministry attributed the robust demand to big-ticket infrastructure projects in the highways, railways, and port sectors. Notably, consumption exceeded production during the period — a signal of healthy end-use demand rather than inventory build-up.
Exports Surge 35 Per Cent by Volume
India's steel exports rose sharply by 35 per cent in April-July to 22,92,300 tonnes, compared with 16,98,000 tonnes in the same period last year. In value terms, exports jumped 29.4 per cent to ₹18,105.4 crore from ₹13,996.2 crore a year earlier. The export momentum was particularly strong in June, when shipments climbed 38.1 per cent year-on-year to 6,16,200 tonnes, against 4,46,200 tonnes in June last year.
Crude Steel Output and Capacity
Crude steel production stood at 56.3 million tonnes in April-July of the current financial year, up from 54.9 million tonnes in the same period last year — a 2.6 per cent increase. India's total crude steelmaking capacity currently stands at 222 million tonnes per annum, keeping the industry on course to meet the National Steel Policy target of 300 million tonnes per annum by 2030, according to an official statement.
SAIL Posts Strong Q1 Results and Defence Milestone
Public sector steel major Steel Authority of India Limited (SAIL) reported a 138 per cent year-on-year jump in net profit to ₹1,636 crore in the first quarter of FY 2026-27, with revenue from operations at ₹26,246 crore. The company also received a Licensing Agreement for Transfer of Technology from the Defence Metallurgical Research Laboratory of DRDO to manufacture DMR-249A, DMR-249B, and DMR-249BK grade steel for naval ships and submarines — strengthening India's indigenous defence-steel capability. Additionally, SAIL inaugurated its first Micro Pellet Plant at Rourkela Steel Plant in July 2026, a 0.18 MTPA facility that converts steelmaking waste into value-added micro pellets, supporting sustainability and raw material self-sufficiency.
With capacity expansion on track and export volumes accelerating, India's steel sector is positioning itself as a significant global supplier — even as domestic infrastructure demand continues to absorb a growing share of output.
Point of View
It signals genuine end-use demand rather than stockpiling, which is a healthier foundation for capacity expansion. The 35 per cent export surge is impressive, but it warrants scrutiny: global steel prices have been under pressure, so volume gains may not translate proportionally into margin gains for exporters. SAIL's 138 per cent profit jump is striking, yet it comes off a low base from a difficult prior year. The real test for India's steel ambitions is whether the 300 MTPA target by 2030 is backed by commensurate investment in raw material security — particularly coking coal, where India remains heavily import-dependent.
NationPress
6 Aug 2026
Frequently Asked Questions
By how much did India's finished steel production grow in April-July this fiscal?
India's finished steel production grew by 4 per cent to 54.3 million tonnes in April-July of the current financial year, up from 52.2 million tonnes in the same period last year, according to Ministry of Steel data.
What drove the 7.8 per cent rise in India's steel consumption?
The 7.8 per cent increase in domestic steel consumption to 55.9 million tonnes was driven by large-scale government infrastructure projects in the highways, railways, and port sectors. This demand surge pushed consumption above production levels during the period.
How much did India's steel exports grow in April-July?
India's steel exports rose 35 per cent by volume to 22,92,300 tonnes in April-July, and 29.4 per cent by value to ₹18,105.4 crore, compared with the same period last year.
What is India's current steel capacity and the 2030 target?
India's total crude steelmaking capacity currently stands at 222 million tonnes per annum. The National Steel Policy sets a target of 300 million tonnes per annum by 2030, and the industry is described as on track to meet it.
What were SAIL's key highlights in the latest quarter?
SAIL reported a 138 per cent year-on-year jump in net profit to ₹1,636 crore in Q1 FY 2026-27, with revenue from operations at ₹26,246 crore. The company also received a DRDO technology licence for defence-grade steel and inaugurated a new Micro Pellet Plant at Rourkela Steel Plant.
