India’s Steel Consumption Set to Grow 9-10% In FY26, Says Ministry of Steel Secretary

India’s steel consumption is projected to rise by 9 to 10% in the current financial year, according to Sandeep Poundrik, Secretary of the Ministry of Steel, in an interview with CNBC TV18. The outlook is driven by recovering seasonal demand and the positive impact of recent goods and services tax (GST) reforms.

Demand Drivers for Steel

Poundrik highlighted that India is witnessing sustained demand momentum across multiple industries. He stated that changes in GST are likely to boost consumption in construction, automobiles, and household consumer durables. With the rainy season nearing its end, activity in infrastructure and real estate is expected to accelerate, adding further momentum to demand.

India is the only major global economy where steel consumption has been growing in double digits for the past three years, Poundrik noted. This trend underscores the country’s position as a key driver of global steel demand.

Impact of GST Reforms

The recent adjustments in GST are anticipated to strengthen supply chains and reduce input costs, thereby improving affordability and access for downstream industries. These changes are expected to create a multiplier effect, spurring investment and consumption across both urban and rural markets.

Poundrik expressed confidence that these reforms would support the steel sector’s expansion, especially at a time when India is pushing infrastructure growth as part of its economic development strategy.

Government Measures on Imports

Addressing concerns about import pressures, Poundrik pointed out that measures such as a provisional safeguard duty have been effective in reducing inflows. Imports from China, one of the largest exporters of steel, have dropped significantly this year.

He added that ongoing anti-dumping investigations are expected to provide further protection for domestic producers, preventing the entry of cheap or substandard steel into the Indian market. According to Poundrik, these safeguards will allow the local industry to compete more effectively while maintaining quality standards.

Outlook for the Steel Sector

Looking ahead, Poundrik believes the Indian steel sector is well-protected and unlikely to face adverse impacts from imports in the near term. He noted that domestic demand and regulatory support would help prices stabilise in the coming months.

The combination of sustained consumption growth, supportive government policies, and improved market conditions indicates a strong trajectory for the steel industry in FY26.

Read More: Steel Ministry approves ₹5,000 crore scheme to cut emissions in steelmaking

Conclusion

India’s steel sector is positioned for robust growth, with demand expected to rise by 9-10% this year. Backed by GST reforms, resilient domestic demand, and protective trade measures, the industry is set to play a key role in the country’s infrastructure and industrial expansion.

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