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India's Steel Boom Outpaces Global Rivals
22 Sep
Summary
- India's steel production growth in 2026 is the fastest globally.
- Tata Steel and JSW Steel are key drivers of this expansion.
- Government policies like PLI and safeguard duties boost production.
India's steel industry is achieving the fastest growth rate globally in calendar year 2026. This remarkable expansion is spearheaded by major corporate entities such as the Tata Group and JSW Group, who have focused on increasing capacity.
The Indian government has implemented supportive policies, including a Production Linked Scheme for value-added products and a 12% safeguard duty on specific imported steel flat products, which is expected to remain in effect for three years. These measures have significantly boosted domestic steel production.
Tata Steel concluded FY26 with a total capacity of 36 million tonnes, while JSW Steel reported a domestic crude steel installed capacity of 36.4 million tonnes by the end of FY26. Both companies have seen substantial capacity increases.
Post-COVID, India has demonstrated a 9.6% compound annual growth rate in steel production between CY22 and CY25, reaching 165 million tonnes in CY25. This growth contrasts with China's production decline of 3.1% in CY2026.
Government initiatives like the PLI Scheme for Specialty Steel aim to increase local manufacturing of high-value steel and create employment, targeting 42 million tonnes of specialty steel annually by FY27. Companies like JSW Steel reported strong Q1 FY27 operating profit margins of 19.8%, benefiting from higher prices and output.
