Archive · 22 Sep 2026
India Outpaces China in Steel Growth as Three Stocks Rise
India is making steel faster than the other major steel-producing countries.
Its steel output grew 6.1% between January and July 2026.
China’s production fell by 3.1% during the same period.
Tata Steel and JSW Steel have expanded their factories and production capacity in India.
Government programs and import duties have also encouraged local steelmaking.
Steel is used in cars, buildings, and infrastructure.
Strong demand helped several Indian steel companies perform well in the June 2026 quarter.
The article highlights Tata Steel, JSW Steel, and Steel Authority of India Limited as stocks investors may watch.
However, the article also says investors should make decisions based on their own circumstances and seek independent advice.
India recorded the fastest steel-production growth among the five leading producers during January–July 2026, rising 6.1% year over year to 101.1 million tonnes.
Indian steel output increased from 125.37 million tonnes in CY22 to 165 million tonnes in CY25, a 9.6% compound annual growth rate.
Tata Steel and JSW Steel drove much of the capacity expansion, reaching 27.4 million tonnes and 36.4 million tonnes of Indian capacity, respectively, by FY26.
The government supported domestic producers through the specialty-steel PLI scheme and a 12% safeguard duty on certain steel imports introduced in April 2025.
Tata Steel, JSW Steel, and Steel Authority of India Limited were highlighted as stocks to watch, with reported P/E ratios of 19.4, 26, and 14.9, respectively.
- Who
- Indian steel producers, especially Tata Steel, JSW Steel, and Steel Authority of India Limited, along with government policymakers.
- What
- India’s steel production is growing faster than that of the other leading steel-producing nations, supported by capacity expansion and policy measures.
- When
- The comparison covers CY22–CY25 and January–July 2026; the policy measures and company results include developments through FY26 and the first quarter of FY27.
- Where
- India, including Tata Steel’s Kalinganagar facility in Odisha and JSW Steel’s Vijayanagar facility in Karnataka.
- Why
- Capacity expansion, demand from industries such as construction and automobiles, the specialty-steel PLI scheme, and import safeguards supported India’s growth.
Growth and Investment Case
Risks and Caution
Domestic steel expansion
Growth and Investment Case
Tata Steel and JSW Steel are adding capacity to meet demand from construction, automobiles, and other manufacturing industries.
Risks and Caution
The article notes that steel demand and company performance remain exposed to broader economic conditions and sector-specific weakness.
Government support
Growth and Investment Case
The specialty-steel PLI scheme and 12% safeguard duty are presented as measures that encourage domestic production and reduce import dependence.
Risks and Caution
Trade barriers have contributed to lower Chinese production, and the article does not establish how long the supportive effects on Indian producers will last beyond the stated policy periods.
Stock attractiveness
Growth and Investment Case
Tata Steel, JSW Steel, and Steel Authority of India Limited are near reported 52-week highs, while Steel Authority of India Limited trades at a lower P/E multiple than its larger peers.
Risks and Caution
Steel Authority of India Limited has lower reported return on equity than Tata Steel and JSW Steel, and the article cautions investors to make decisions based on their own objectives and resources.
- India steel output, January–July 2026
- 101.1 million tonnes, up 6.1% year over year
- China steel output, January–July 2026
- 577 million tonnes, down 3.1% year over year
- India’s CY22–CY25 steel growth
- Output rose from 125.37 million tonnes to 165 million tonnes; CAGR was 9.6%
- Tata Steel Indian capacity
- Approximately 27.4 million tonnes at the end of FY26
- JSW Steel domestic capacity
- 36.4 million tonnes at the end of FY26, including 4.5 million tonnes from its JSW JFE Steel joint venture
- Specialty-steel PLI target
- 42 million tonnes of annual specialty-steel production by FY27
- Safeguard duty
- A 12% duty on certain non-alloy and alloy steel flat-product imports, introduced in April 2025 and expected to remain for three years