India approved 23.34 million tonnes (Mt) of new steelmaking capacity in the first half of FY2027 (April to September), according to BigMint data reported by GMK Center on 19 October 2026. The approvals show a fresh round of India steel capacity expansion, with July alone setting a monthly record.
GMK Center, citing BigMint, reported that July approvals reached a record 7.53 Mt, followed by 1.60 Mt in August and 2.57 Mt in September. Capacity stood at 220 Mt at the end of FY2025/26, and India’s national strategy targets 600 Mt of annual steel capacity by 2047.
Which Routes and Products Dominate the New Steel Capacity?
The approvals lean heavily on two production routes. The basic oxygen furnace (BOF) route accounts for 10.67 Mt and the induction furnace (IF) route for 10.50 Mt, which together make up about 91% of the total. Electric arc furnace (EAF) capacity accounts for 2.17 Mt.
On the product side, speciality rolled steel makes up 15.1 Mt of the approved rolling capacity. Flat steel accounts for only 0.4 Mt.
Which States Are Leading India’s Steel Capacity Expansion?
Three states account for about 58% of approvals, or 13.54 Mt combined. Karnataka leads with 6.0 Mt, all of it BOF. Odisha follows with 3.84 Mt, of which 3.37 Mt is BOF and 0.47 Mt is IF. Chhattisgarh has 3.70 Mt, split between 1.30 Mt of open-hearth and 2.40 Mt of induction capacity.
What Does This Mean for India’s Steel Sector?
The figures point to a large pipeline of planned capacity, but approval is not production. About 16.7 Mt of the approved capacity is still at the environmental clearance stage, so commissioning timelines depend on how quickly projects clear that stage and move through construction. The source does not name individual companies behind the approvals.
Market Reaction and Industry Response
The source report does not include any stock-market reaction, analyst commentary or trade-body response, and Industrial Front did not find any in the material reviewed for this article.
What Happens Next?
The next milestones are environmental clearances for the roughly 16.7 Mt still awaiting them and the start of construction on approved projects. Further monthly approval data from BigMint will show whether the pace set in July continues in the second half of FY2027.
Frequently Asked Questions
How much steel capacity did India approve in H1 FY2027?
India approved 23.34 million tonnes of steelmaking capacity between April and September 2026, according to BigMint data reported by GMK Center.
Which states have the most approved steel capacity?
Karnataka has 6.0 Mt, Odisha 3.84 Mt and Chhattisgarh 3.70 Mt. Together they hold about 58% of the approvals.
Is all the approved capacity ready to produce steel?
No. About 16.7 Mt is still at the environmental clearance stage, so commissioning depends on construction progress.
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