India’s steel sector saw a notable decline in exports during the first quarter of FY 2025, but a sharper reduction in imports helped narrow the trade deficit, signaling a modest recovery amid market headwinds.
According to official data for Q1 (April–June), steel exports fell sharply to USD 1.23 billion-a 33 per cent drop year-on-year, attributed to weakening global demand and intensified competition from China. Imports of finished steel also moderated significantly, driven by policy interventions and domestic demand shifts, resulting in a 10 per cent drop compared to the same quarter last year.
Despite the export decline, the net impact was a narrowed steel trade deficit of around ₹6,704 crore, a stark reversal from the ₹3,698 crore surplus reported in Q1 FY 2024. This shift underscores a rebalancing of India’s steel trade dynamics, shaped by import control and market slowdown.
Industry analysts credit the reduction in Chinese steel inflows-following tentative safeguard duties-as a key factor in curbing imports. Meanwhile, slower global demand hit export markets in Europe and West Asia.
Beyond trade figures, domestic steel consumption remained resilient, supported by government-led infrastructure projects and policy support under programmes like Bharatmala and PM Gati Shakti. Capacity utilisation stayed near 88 per cent in Q1, helped by robust local demand.
Looking ahead, experts warn that revived export competitiveness will depend on securing new markets in Southeast Asia, Africa, and the Middle East, while maintaining trade safeguards to shield domestic producers. Stimulating exports through value-added products and stricter anti-dumping measures, alongside diversified sourcing for raw materials, is seen as crucial for turning the tide in India’s steel trade balance.
