Step 1: Identify the top steel producer.
China is consistently the world's largest steel producer, accounting for more than half of total global output each year due to its massive industrial base.
Step 2: Identify the second-largest producer.
India has surpassed Japan to become the world's second-largest steel producer, a milestone that reflects India's rapid industrial growth, infrastructure expansion, and manufacturing capacity.
Step 3: Rule out other options.
Japan currently ranks third globally, and Germany, though a significant European producer, does not rank among the top two.
\[ \boxed{\text{India}} \]