India became a net exporter of steel in FY26, with exports rising 43 per cent led by strong dollar while imports contracted by 15 per cent due to safeguard duty.
According to data sourced from trade intelligence firm BigMint, total exports stood at 8.77 million tonne (mt) in the fiscal ending March 31 compared with 6.1 mt the year before. In contrast, imports slowed to 7.57 mt from a high of 8.9 mt the year before.
Industry sources cited two factors driving exports. Rupee depreciated by around 11.4 per cent against the dollar in FY26, making selling abroad remunerative for the steel majors at a time when domestic market prices hit a multi-year low.
Moreover, major producers such as Tata Steel, JSW Steel and SAIL expanded capacity, making more volume available for sale in the local market. According to government data, India’s crude steel output jumped by over 10.7 per cent year-on-year to around 168.4 mt.
In contrast, domestic demand for finished steel expanded by about 7–8 per cent to 164 MT, reflecting production growth outpacing consumption. India’s total steel capacity stood at about 220 mt.
A key feature of steel exports was the jump in finished steel exports, such as hot rolled coil, plates, galvanised steel, pipes and tubes.
Imports, in comparison, decelerated as the government imposed an import tariff on some steel products to curb cheaper shipments, primarily from China.
The levy, locally known as a safeguard duty, has been imposed at 12 per cent followed by 11.5 per cent in the second year and 11 per cent in the third year. South Korea and Japan which enjoy duty free access to India, were the top and third-highest exporters respectively, while China held the second spot.
Energy transition
India’s diversification of energy sources and enhancing access to critical minerals are crucial for the country’s economy, but this shift has introduced new challenges, said Tata Steel CEO and managing director T V Narendran.
“The challenge is obvious while we are diversifying our sources of energy and critical minerals, and we must; this diversification is also a layered vulnerability, not just dependence on imports but also dependence on political goodwill that allows these imports to flow,” he said.