India’s steel industry maintained solid expansion momentum in December 2025, even as downstream sectors such as automobiles and construction showed signs of moderate short-term slowdown, according to industry and macroeconomic data.
Crude steel output reaches multi-month high
India’s crude steel production rose 8% month on month to approximately 14.79 million mt, supported by higher utilization ahead of the peak construction season and project deadline-driven demand.
Industrial output hits over two-year high
India’s Index of Industrial Production (IIP) increased 7.8% year on year, marking a 28-month high, with manufacturing output growing 8.1%. Infrastructure and construction-related industries expanded by 12.1%, while capital goods output rose 8.1%.
Automobile production moderates
Automobile production declined 11% month on month to 2.63 million units, reflecting inventory normalization and weaker short-term demand. However, year-on-year production rose 37%, supported by a low base in 2024.
Outlook remains supportive
Despite softer PMI readings and slower export order growth, analysts expect infrastructure spending, manufacturing recovery, and rising power consumption to support steel demand into early 2026. India’s GDP growth forecast has been revised upward to around 7.4%, reinforcing a positive medium-term outlook for steel consumption.
VietnamSteel by Hoa Sen Group
