India's production of finished steel rose 3.7 per cent to 81.8 million tonnes in the first half of financial year 2026-27 (April–September), up from 78.8 million tonnes in the same period a year earlier, according to data released by the Ministry of Steel on Tuesday, 6 October 2026. The figures signal sustained momentum in the sector, underpinned by strong government-driven infrastructure demand.

Consumption Outpaces Production

Domestic consumption of finished steel surged by a robust 7.9 per cent to 84.9 million tonnes in H1 FY27, compared with 79 million tonnes in the corresponding period of FY26. The fact that consumption exceeded production — by roughly 3.1 million tonnes — reflects the intensity of demand from large-scale infrastructure projects in highways, railways, and ports being executed by the government. Notably, this demand-supply gap underscores the continued need to scale domestic capacity.

Exports Surge 26%, Cross ₹28,000 Crore

India's steel exports climbed 26.2 per cent in H1 FY27 to 3.55 million tonnes, against 2.81 million tonnes in the April–September window of the previous financial year. In value terms, exports jumped 28.9 per cent to ₹28,263.7 crore from ₹21,931.5 crore a year ago. The stronger export realisation — growing faster than volumes — points to improved pricing in overseas markets. Crude steel output stood at 85.1 million tonnes in H1 FY27, up 2.9 per cent from 82.7 million tonnes in the same period last year.

Capacity on Track for 300 MTPA Target by 2030

India's total crude steelmaking capacity currently stands at 222.9 million tonnes per annum (MTPA), according to an official statement. The government's National Steel Policy targets 300 MTPA by 2030, leaving a gap of roughly 77 MTPA to be bridged in four years — a significant but not unprecedented scale-up challenge given the pace of recent capacity additions.

NMDC Commissions ₹5,427-Crore Pellet Plant in Chhattisgarh

Mining major NMDC reported an 8 per cent year-on-year rise in iron ore production to 4.04 million tonnes in September 2026, taking its H1 FY27 output to 27.3 million tonnes — up nearly 23 per cent over H1 FY26. The company has also commissioned its 2 MTPA pellet plant at Nagarnar, Chhattisgarh, completing a ₹5,427-crore integrated project. The project links an iron ore processing plant at Bacheli via a 135-kilometre, 15 MTPA slurry pipeline to the Nagarnar facility, which employs Straight Grate Induration technology. It is designed to enable value addition from Bailadila iron ore fines and slimes, reduce road transport dependency, and extend NMDC's footprint across the iron ore value chain.

New Safety Council to Govern Industry Standards

The Ministry of Steel has decided to establish a Steel Industry Safety Council (SISC), to be chaired by the Secretary, Ministry of Steel, as an apex body for strengthening safety standards, accident prevention, and safety culture across the sector. A dedicated Steel Industry Safety Directorate (SISD) will support the Council through safety audits, investigation of serious incidents, and issuance of safety standards suited to Indian conditions — covering both iron and steel producers and Central Public Sector Enterprise (CPSE) mines. The move signals an institutional acknowledgment that India's accelerating steel output must be matched by comparable progress on worker and plant safety.

With consumption growth running nearly double the pace of production growth, the sector's near-term challenge will be closing the supply gap while sustaining the export momentum that has gathered pace in the first half of the year.