India’s Crude Steel Production Rises to 170.15 MT as Capacity Expands

India’s steel industry continued its expansion in 2025-26, with crude steel production rising to 170.15 million tonnes (MT), according to data shared by the government in the Rajya Sabha. The increase marks a significant rise from 144.30 MT recorded in 2023-24 and comes as domestic steel capacity continues to grow.

The country’s crude steel capacity reached 220.41 MT during 2025-26, up from 179.51 MT three years earlier. The numbers point to continued investment in steelmaking capacity, even as capacity utilisation moderated from 80.4% to 77.2% over the same period.

Domestic consumption has also strengthened. Per capita finished steel consumption increased from 97.7 kg to 115.7 kg during the last three years, reflecting the broader demand generated by infrastructure, construction, manufacturing and other steel-intensive sectors.

The expansion is aligned with the objectives of the National Steel Policy, 2017, which targets 300 MT of crude steel capacity and 255 MT of crude steel production by 2030-31. Reaching those targets will require continued capacity additions as well as efficient utilisation of existing plants.

Among the major producers, Steel Authority of India Ltd (SAIL) has approved an ambitious expansion programme. The state-owned steelmaker plans to increase its crude steel capacity from around 20 MT to 35 MT by 2030-31. The expansion will cover its plants across Chhattisgarh, West Bengal, Odisha and Jharkhand.

The government has also maintained that the steel sector remains deregulated, with companies taking investment and capacity expansion decisions based on techno-commercial considerations. Its role is focused on creating a policy environment that supports domestic production, reduces import dependence and encourages fresh investment.

Policy support includes the Production Linked Incentive scheme for specialty steel and the Domestically Manufactured Iron & Steel Products policy, which promotes the use of domestically produced steel in government procurement.

With capacity increasing and consumption gaining ground, India’s steel sector is entering the next phase of expansion. The challenge will be to ensure that new capacity translates into efficient production, stronger domestic value addition and sustainable long-term growth.