Leading Indian steel companies, including JSW Steel and Tata Steel, plan to invest heavily in increasing steel capacity by at least 22 million mt per year in the fiscal year 2024-25, according to media reports on Wednesday, March 20.
Indian companies are trying to increase production capacity to record levels to capitalize on growing domestic demand for steel amid a surge in economic activity and infrastructure development. The rapid development of India’s economy is attracting the attention of steel producers from around the world, so local producers are trying to expand their operations so that planned projects can be implemented using a high share of domestic products, the reports said.
This comes at a time when steel consumption is declining in Europe and the United States, the reports said.
In 2024-25, Jindal Steel and Power is expected to add 6 million mt of capacity to its existing 9.6 million mt per year at present. Tata Steel is expected to add 5 million mt per year capacity to its existing 21 million mt per year capacity, and JSW Steel, the largest steel producer in India, plans to increase production capacity to 38.5 million mt per year, up from 27.5 million mt per year at present, the report said.
The report, however, did not give out any investment figures for the companies.