India’s steel capacity reaches 200 million tons per year

India’s steel industry is showing rapid growth. In fiscal year 2025, its capacity reached 205 million tons per year, up 10% from 186 million tons in 2024. Over the past decade, the figure has almost doubled from 109 million tons in 2015. This growth reflects the country’s economic development, urbanization and active public investment in infrastructure, BigMint notes.

The steel sector is expanding in both the public and private segments. Major producers such as JSW, Tata Steel, and SAIL have significantly increased their capacity to meet growing demand. Cumulative capacity expansion in 2025 is estimated at 13 million tons, with companies such as JSPL and AM/NS India having ambitious plans for further growth.

Traditional steel production also experienced a significant rebound, with blast furnace capacity up 17% y-o-y (to 88.5 million tons), induction furnace capacity up 9% (to 74 million tons), and electric arc furnace capacity remaining stable (43 million tons). In general, steel production in the country in 2025 increased by 6% y/y, reaching 152 million tons.

However, the rapid growth of domestic capacity may exceed consumption, creating risks of oversupply, lower prices and lower margins for producers. In addition, export prospects are complicated by global trade policy.

As GMK Center reported earlier, steel production in India increased by 5.2% y/y – to 138.21 million tons in 11 months of FY2024/2025 (April 2024 – February 2025). Rolled steel output increased by 5% y/y – to 132.89 million tons, while domestic consumption amounted to 137.82 million tons, up 11.3% y/y. Exports of finished steel products decreased by 33.7% y/y – to 4.4 million tons, while imports increased by 15.8% y/y – to 8.98 million tons.