India’s steel industry stands out as a rare success story in a troubled global market. While U.S.-led tariffs and trade uncertainties weigh heavily on steelmakers worldwide, India’s domestic demand and protective policies are helping its major steel producers grow sales and profits this year, according to a new S&P Global Ratings report.
Domestic demand shields India’s steel industry
“Growing domestic demand for steel will keep India’s steel markets relatively insulated from the impact of rising U.S.-led tariffs in the sector,” said Anshuman Bharati, credit analyst at S&P Global Ratings.
The country’s steel prices have benefited from safeguard duties and lower raw material costs, unlike many global markets struggling with tariffs of up to 50 per cent. Indian policymakers raised steel import duties in April to protect local producers from dumping risks, helping domestic steel prices diverge positively from global trends.
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Stronger margins and improved financial health expected
S&P forecasts a 40 per cent average rise in EBITDA for India’s major steelmakers in fiscal 2026, ending March 31, with debt-to-EBITDA ratios improving from 3.5 times in 2025 to 2.4 times. This would place India’s steel sector below its 10-year average leverage level of 3.0 times, signalling a healthier financial footing for companies like Tata Steel Ltd.
Risks remain if global prices fall
However, the report warns that if global steel prices drop sharply, dumping risks could increase, potentially reversing India’s price advantage. Monitoring these developments will be critical for Indian steel producers amid ongoing global trade uncertainties.