Indian Steel Industry Poised For Record Growth Amid Rising Domestic Demand

New Delhi, Mar 20 (KNN) With India's economy surging and infrastructure projects undergoing a significant overhaul, major steel producers such as JSW Steel Ltd and Tata Steel Ltd are gearing up for substantial investments to capitalise on the burgeoning demand within the nation.

In stark contrast to the decline witnessed in Europe and the United States, India stands out as a beacon of growth for steel manufacturers worldwide.

Analysts and industry data project a remarkable capacity expansion of at least 22 million metric tons in the upcoming fiscal year commencing April 2024.

Jindal Steel and Power, a key player in the Indian steel landscape, anticipates augmenting its existing capacity by 6 million metric tons, supplementing its current output of around 9.6 million metric tons.

Similarly, Tata Steel has announced plans to bolster its capacity by 5 million tons, adding to its existing 21 million ton capacity.

JSW Steel, the largest steel producer in India, aims to significantly ramp up its capacity to 38.5 million tons by 2024/25, a substantial increase from its current domestic capacity of 27.5 million tons.

This ambitious expansion plan involves substantial investment, with projections suggesting an annual expenditure of USD 2-USD 2.2 billion towards brownfield expansions, iron mining capacities in Odisha, and downstream projects.

Collaborative ventures further underline the industry's growth trajectory, exemplified by JSW Steel's partnership with Japan's JFE Steel.

The joint venture, involving an investment of 55 billion rupees (USD 662.85 million), focuses on the production of grain-oriented electrical steel, vital for transformer manufacturing.

Meanwhile, Tata Steel is earmarking significant investments ranging between USD 1.21-USD 1.51 billion for the fiscal year 2024/25, highlighting its commitment to expansion and modernization.

Analysts foresee robust growth in India's steel consumption, projected to increase between 8 per cent to 10 per cent in the fiscal year 2024/25.

This optimistic outlook is reinforced by the impressive performance witnessed in recent months, with steel consumption soaring by 14.5 per cent to reach a six-year high of 112.5 million metric tons during April-January.

(KNN Bureau)