India Ratings and Research (Ind-Ra) has said India will remain among the fastest-growing steel markets globally in FY27 amid persistent oversupply in global steel markets, geopolitical uncertainty, evolving trade barriers and tightening sustainability regulations. The report framed the outlook against a backdrop of global headwinds alongside resilient domestic demand and policy support. Ind-Ra expects India’s steel demand to expand at a high single-digit per cent year-on-year in FY27, up from seven point four per cent in FY26, driven by continued government infrastructure spending, robust activity in construction, engineering and automotive sectors and a likely pickup in private corporate capital expenditure. The agency noted that strengthened balance sheets among steel players should support ongoing investments and that profitability has been aided by the imposition of safeguard duties. The rating agency maintained a neutral outlook on the sector for FY27, asserting that strong domestic demand, supportive trade measures, stable raw-material costs and disciplined capacity expansion would continue to underpin profitability, cash flows and credit profiles. It said that while leverage metrics were not expected to deteriorate materially, effective execution of expansion projects and adherence to carbon-transition requirements would be critical to sustaining credit metrics. Rohit Sadaka, Director-Large Corporates at Ind-Ra, identified near- to medium-term monitorables as raw-material price volatility, significant capacity expansion risks and lower import quotas in the European Union. He indicated that the impact of the Carbon Border Adjustment Mechanism on European Union exports remained a concern and that export-related regulations would be watched closely. The agency said that these factors, together with evolving trade barriers and geopolitical risk, would continue to shape export prospects and the investment calculus for the sector.