INDIA'S STEEL SURGE

India's steel industry is booming, yet battling imports, costs, and sustainability challenges. Can this momentum fuel long-term growth and create global dominance?

- By ASHISH SINHA

INDIA TODAY STANDS AS THE WORLD'S second-largest producer of steel, with output in FY 2024-25 touching around 150 to 152 million tonnes against an installed capacity of nearly 205 million tonnes. Consumption has risen sharply, recording about 11 per cent growth, powered by government-led infrastructure programmes such as Gati Shakti, smart cities and affordable housing schemes. Steel has become the lifeblood of India's construction and urbanisation story, supporting new highways, metro projects, housing societies and commercial hubs. This demand surge has kept producers busy, but not without its share of challenges. Imports, particularly cheap finished steel from China and Vietnam, nearly doubled in some quarters, denting the profitability of domestic players. Industry estimates suggest that capacity utilisation slipped to nearly 78 per cent in FY25, raising concerns over margins even as capacities expand.

India's steel sector maintained robust momentum in the April-July 2025 period with both production and consumption registering strong growth. Crude steel output rose to 54.19 million tonnes, an 11.1 per cent increase compared with last year, while finished steel production climbed 8.8 per cent to 51.46 million tonnes. Finished steel consumption kept pace, rising 7.5 per cent to 51.45 million tonnes during the same period. On the trade front, India's steel exports in July 2025 stood at 0.49 million tonnes, slightly higher than June, while imports declined to 0.28 million tonnes, pushing the country into net exporter territory for April-July FY26. The export basket saw gains from Belgium, Italy and Spain, even as shares of UAE and Nepal declined. Prices showed some cooling, with retail TMT bars in Mumbai falling 4.1 per cent month-on-month to 53,970 per tonne at the end of July. International coking coal prices also eased to $177 per tonne, providing cost relief for producers