India is the world's second-largest producer of crude steel, behind China. In calendar 2025 China produced 960.8 MT, India 164.9 MT, the United States 81.9 MT and Japan 80.7 MT - so India produces roughly twice as much as the third-placed United States, and about a sixth of China's output. The picture in trade is different from the picture in production: despite ranking second in output, India stayed a net importer of finished steel in April-July 2026, with imports growing faster than exports and China alone supplying nearly a third of what came in.

Steel consumption is read as a proxy for construction and infrastructure activity, because those sectors absorb most of India's finished steel. Consumption rising 7.9% while production rose only 4.7% is the number that matters: the gap is filled by imports, which is why imports climbed 36.6% and India stayed a net importer despite being the world's second-largest crude steel producer. The alloy steel figures point the other way - production up 26.7% and exports up over 150% suggest the value-added end of the industry is gaining, which is what the specialty steel PLI scheme was designed to achieve. Stainless steel is the weak spot: consumption up 25% but production down 4.2%, with imports doubling.