India is set to increase iron ore imports to a seven-year high in the FY2025/2026

Iron ore imports to India are set to rise to a seven-year high in the 2025/2026 fiscal year (ending March 31) due to a domestic shortage of high-quality raw materials and demand from JSW Steel, according to Reuters.

As analysts and industry executives note, total iron ore imports for the period are likely to reach 12–14 million tons, more than double the figure for the previous fiscal year.

According to Lalit Ladkat, a senior analyst at the London-based consulting firm CRU, JSW Steel was the key driver of imports of this raw material for its plants in the states of Maharashtra and Karnataka. According to him, the bulk of imported iron ore in the current fiscal year came from Brazil and Oman — together, they accounted for about 70% of total imports.

Meanwhile, according to BigMint, iron ore production in India is expected to reach 305 million tons in the 2025/2026 fiscal year, compared to 289 million tons the previous year. Exports will rise by 26% year-on-year – to 29 million tons, with 85% of shipments going to China, says Ladkat.

According to representatives of the mining industry, India exports mainly low-grade iron ore, which is not typically used by the country’s steel mills. In the 2026/2027 fiscal year, which begins on April 1, production of this raw material is expected to rise as Indian mines ramp up output. However, imports may continue depending on quality requirements and supply dynamics at the plant level, explains Sumit Jundjunwala, vice president of ICRA Ratings.

However, according to analysts, India, which has been importing cheaper iron ore pellets from Iran since last year, is likely to face a reduction in these supplies due to the conflict in the Middle East. From April to February, the country imported a total of 1.88 million tons of pellets, which is six times more on an annualized basis.

It is worth noting that in 2025, India increased its imports of coking coal by 9.8% year-on-year – to 62.6 million tons, with an additional 21 million tons of pulverized coal (PCI coal). This is according to data from BigMint. Foreign supplies increased amid rising steel production in the country and a general global decline.