India's finished steel production climbed to 13.8 million tonnes in May 2026, marking a 6.8% year-on-year increase from 12.9 million tonnes in May 2025, according to data released by the Ministry of Steel on 25 June 2026. Consumption outpaced production, surging 9.3% to 14.4 million tonnes as government-driven infrastructure spending continued to stoke demand.

Production and Consumption Figures

Crude steel output reached 14.1 million tonnes in May 2026, up from 13.8 million tonnes in the same month a year earlier. On the demand side, finished steel consumption rose from 13.1 million tonnes to 14.4 million tonnes, driven by large-scale projects in the highways, railways, and ports sectors under the Centre's infrastructure push. The fact that consumption exceeded production underscores India's continued reliance on imports to bridge the supply gap.

Capacity Build-Up and Policy Targets

India's total crude steelmaking capacity stood at nearly 221.9 million tonnes per annum (MTPA) as of May 2026, according to the Ministry's statement. The industry is targeting 300 MTPA under the National Steel Policy by 2030 — a goal that will require sustained capacity additions of roughly 13 MTPA annually over the remaining years. This comes amid broader government efforts to position India as a global steel hub, even as domestic demand itself accelerates.

SAIL Posts Record Sales in FY2025-26

Government-owned Steel Authority of India Limited (SAIL) reported record sales volume of 19.93 million tonnes and revenue of ₹1,10,810 crore for FY2025-26. Sales volume grew 11.4% year-on-year, reflecting what the company described as strong market demand and improved operational performance. The results were announced during May 2026.

Raw Material Security and Green Steel Push

Both SAIL and NMDC are reportedly exploring coking coal asset acquisitions and nickel supplies in Russia, following a delegation visit in May 2026. SAIL has formed an internal committee to evaluate potential opportunities, while NMDC is assessing overseas coal assets to strengthen long-term raw material security, according to the Ministry's statement.

On the sustainability front, SAIL's Bhilai Steel Plant received an Environmental Product Declaration (EPD) certification for its TMT Bars. The plant's 15 MW floating solar project generates approximately 34.25 million units of clean power annually. Officials said the certification aligns with growing domestic and global demand for green steel and reflects SAIL's broader strategy to integrate renewable energy into its operations.

Outlook

With infrastructure spending showing no signs of easing and capacity additions on track, India's steel sector is poised to sustain its growth trajectory through the rest of 2026. Whether the industry can close the gap between consumption and domestic production — and reduce import dependence — will be the key metric to watch in the months ahead.