India remained a net importer of finished steel for the second consecutive month of FY2026-27, as imports continued to outpace exports amid strong domestic demand and a fresh influx of competitively priced overseas material. Preliminary industry and government data indicate that higher shipments from major steel-producing nations, particularly in Asia, have widened the country’s steel trade deficit despite healthy growth in exports.
Finished steel imports rose sharply during the opening months of the fiscal year, supported by attractive international prices and robust demand from infrastructure, construction, automotive and manufacturing sectors. While exports also recorded year-on-year growth, the increase was insufficient to offset the surge in inbound shipments, resulting in India retaining its status as a net steel importer.
Industry analysts attribute the trend to increased arrivals from China, South Korea, Japan, Vietnam and other regional suppliers. Chinese steel shipments to India, in particular, have gained momentum due to lower export prices and shifting trade flows from other markets affected by geopolitical uncertainties and changing demand patterns.
The development marks a reversal from FY2025-26, when India regained its position as a net exporter of finished steel after exports climbed and imports declined significantly. However, rising domestic consumption and renewed import pressure have altered the trade balance at the start of the current fiscal year.
Domestic steelmakers have continued to express concerns over low-cost imports, warning that sustained inflows could pressure margins and affect future capacity expansion plans. The industry is closely monitoring market conditions and government trade measures aimed at safeguarding domestic producers while ensuring adequate steel availability for India’s growth-driven economy.
