Sector Snapshot · Ferrous Metals

India's Steel Industry Builds Toward 300 Million Tonnes

A fast-read primer on India's ferrous metals and steel sector — the backdrop against which we benchmark every company's cost structure in this category.

World's largest crude steel producer ranking

153.6 MT

Crude steel production, FY26 (Apr-Feb)

300 MT

Steel capacity target by FY30

US$156.08 bn

Investment needed to hit the FY30 target

100%

FDI allowed under automatic route

Capacity Is Scaling Toward a 300 MT Target

Production capacity has grown steadily, and the government's FY30 ambition implies a significant further step-up.

Steel Production Capacity (MT)

FY25 → FY30 target

200.33 MT

FY25

300 MT

FY30 Target

FDI in Metallurgical Industries (US$ bn)

Cumulative since April 2000 vs. investment needed by 2030-31

$19.14bn

Cumulative FDI

$156.08bn

Investment Needed

What's Pushing the Sector Forward

Robust demand, competitive fundamentals, and consistent policy support underpin the sector.

Robust Demand

Domestic steel demand estimated to grow 9-10% in 2025 (ICRA)
Finished steel production reached 146.8 MT in FY26 (Apr-Feb)

Competitive Advantage

Low-cost manpower and abundant iron ore reserves
Potential to be the world's 2nd-largest iron ore producer

Policy Support

100% FDI allowed under the automatic route
30% export duty on iron ore to protect domestic supply
Rs443.18 crore allocated to the Ministry of Steel, FY27

Recent Developments

A sample of the industry-wide and policy moves shaping the sector through early 2026.

→ SAIL approved a Rs 7,500 crore capex plan for FY26, a 25% increase, to scale toward 35 MT/annum by 2030.
→ Sales of saleable steel rose 27.16% YoY in FY26 (Apr-Feb) to 182.44 lakh metric tonnes.
→ Steel production capacity is projected to rise to 300 MT by FY30, from 200.33 MT in FY25.
→ India's green steel demand is forecast to climb from negligible levels today to 4.49 million tonnes by FY30, and 179 MT by FY50.
→ India ranked as the world's second-largest crude steel producer in 2025.
→ FDI inflows into metallurgical industries reached Rs 1,19,407.30 crore (US$19.14bn) since April 2000.

Companies We Benchmark in This Sector

Listed Indian Ferrous Metals companies in tDoBe's cost-benchmarking coverage.

JSW Steel

Tata Steel

Jindal Steel

SAIL

Jindal Stainless

KIOCL

Sarda Energy

NMDC Steel

Vedanta Iron & Steel

Sandur Manganese

Kirloskar Ferrous

Indian Metals

Jai Balaji Industries

Maithan Alloys

Prakash Industries

S.A.L Steel

VISA Chrome

Manaksia Steels

See How These Companies Compare on Cost

The numbers above set the stage. Our Report translates it into a company-by-company cost benchmark — down to the category — so you can see exactly where a business sits against its peers.

Explore the Ferrous Metals Report