India’s steel industry is expected to experience robust growth over the next two years, with long-term demand projections remaining positive. According to industry forecasts, the country’s steel consumption is likely to rise by approximately nine per cent during 2025 to 2026, reflecting sustained economic activity and ongoing infrastructure development.
The growth outlook is underpinned by several key factors, including large-scale government investment in transport, housing, and industrial infrastructure. Urbanisation and rising industrial output are also expected to drive demand for structural steel, flat products, and specialised grades used in construction and manufacturing. Analysts highlight that India’s position as one of the fastest-growing steel markets globally will continue to attract both domestic and international investment into production capacity.
Infrastructure projects such as highways, metro rail networks, airports, and smart cities are expected to serve as major demand drivers. Additionally, the renewable energy sector, including wind and solar power installations, is contributing to higher consumption of steel for structural and mechanical components. The automotive sector is also likely to see increased use of high-grade steel, supporting overall market growth.
Industry experts emphasise that the positive demand outlook will encourage steelmakers to modernise production facilities, adopt energy-efficient technologies, and expand capacity to meet the growing requirements. Companies are expected to focus on product diversification, innovation, and sustainability to remain competitive in a rapidly evolving market.
Despite challenges such as raw material availability and global price volatility, the overall trajectory for India’s steel sector remains favourable. The projected growth reflects both the resilience of domestic demand and the strategic role of steel in supporting the country’s economic and infrastructure development goals.
With sustained policy support and continued investment in industrial and infrastructure projects, India’s steel industry is well-positioned to achieve long-term growth and strengthen its contribution to the national economy.
