India’s Steel Demand to Rise 9% Annually in 2025 and 2026: World Steel Association

India’s steel consumption is projected to grow at a robust pace of 9% each in 2025 and 2026, according to the latest short-range outlook released by the World Steel Association. The surge in demand is expected to be largely driven by sustained infrastructure development and strong growth in the housing and construction sectors.

While the global steel industry faces headwinds, India continues to stand out as a bright spot. The World Steel Association noted that global steel demand is expected to remain flat at around 1.75 billion tonnes in 2025, before edging up by about 1.3% to 1.77 billion tonnes in 2026. The sluggishness in global growth is mainly attributed to China, where demand is expected to decline by 2% in 2025 and 1% in 2026 due to a prolonged downturn in the real estate market.

In contrast, India’s economic expansion and large-scale infrastructure investments are expected to keep domestic demand buoyant. The report highlights that India was the only country among the world’s top five steel producers—China, Japan, the United States, and Russia—to record year-on-year growth in steel production in 2024. The country produced 149.6 million tonnes of steel in 2024, registering a 6.3% increase from the previous year.

The World Steel Association estimates that India’s steel demand in 2026 will be nearly 75 million tonnes higher than in 2020. This trajectory aligns with the National Steel Policy 2017, which envisions achieving a 300 million tonne production capacity by 2030. Currently, India’s installed capacity stands at around 200 million tonnes, with major steel producers aggressively expanding operations to cater to rising domestic consumption.

Experts believe India’s continued investment in transport corridors, housing projects, and urban infrastructure will sustain its steel demand growth in the medium term. As the global industry stabilizes, India’s position as the world’s second-largest steel producer is expected to strengthen further, making it a key growth driver in the global steel market.