India’s steel sector has recorded steady growth in the first quarter of the financial year 2026-27, with robust domestic demand for metals boosting manufacturing activities.
While the economy is under pressure amid the ongoing war in Iran and possible chances of the US imposing secondary sanctions on countries trading with Russia, including India, domestic real-estate and construction activities have extended some support to the country’s growing economic profile.
Crude steel production increased nearly 2.6 per cent year-on-year (YoY) to 56.3 million tonnes (MT), while finished steel production rose 4.0 per cent YoY to 54.3 MT and hot metal production grew 1.5 per cent YoY to 31.6 MT.
Domestic consumption of finished steel reached 55.9 MT, registering a 7.8 per cent YoY increase, reflecting sustained demand from infrastructure, construction and manufacturing sectors.
On the trade front, finished steel exports rose 35 per cent YoY to 2.29 MT, while imports rose 36.6 per cent, making India a net importer during the same period.
The sector also witnessed strong corporate performance, with Steel Authority of India Limited (SAIL) reporting a net profit of Rs 1,636 crore (US$ 171.96 million) and revenue from operations of Rs 26,246 crore (US$ 2.76 billion) in Q1 FY27, while NMDC achieved its highest-ever July production of 4.06 MT.
The steel sector also witnessed resilient growth in defence manufacturing and international collaboration initiatives.
SAIL received technology transfer from the Defence Metallurgical Research Laboratory (DRDO) to manufacture specialised steel grades for naval ships and submarines, strengthening indigenous defence manufacturing capabilities.
Meanwhile, NMDC held a series of discussions in Argentina to explore investment and partnership opportunities in copper and other strategic minerals.
Also read: India-South Africa agree to expand bilateral trade: Piyush Goyal
Follow us
