From the series The world steel battle
Just over fifteen years ago, in the article “La rincorsa siderurgica dell’India” [India’s Steel Catch-Up
, April 2010], we focused on the rise of the Indian steel industry. Today, it ranks among the world’s giants and second only to China, having overtaken the United States, Japan, and finally the EU-27 plus the United Kingdom. In the early months of 2025, the annual growth rate of Indian steel production was still above 10%, compared with stable figures not only for global production but also for Chinese output.
Alongside the advance of the national steel industry, Indian families at the head of major steel groups are increasingly active internationally. In addition to the Mittal and Tata dynasties, Gupta’s Liberty Steel and the two branches of the Jindal family are now present on the global market.
The advance of steel
Indian steel production reached nearly 150 million tonnes (mt) in 2024, with per capita consumption exceeding 100 kg, while production capacity surpassed 200 million tonnes per annum (mtpa). The growth rate over the last fifteen years has averaged over 7%, a pace unmatched anywhere else in the world. Nevertheless, the increase in production has not yet been sufficient to fully meet domestic demand, making India a net importer of steel for several years – an indication of the significant investments under way in the subcontinent.
It is true that tradition, local particularisms, and bureaucracy have prevented the Indian steel industry from reaching the targets set at the end of the 2000s. However, the increase in production remains remarkable, comparable to that of China in the fifteen years from 1987 to 2001, when the Dragon’s output stood at similar levels. Some planned investments did not materialise, running up against political conditions that revealed the historical delays of the Indian bourgeoisie.
The best-known case concerns the South Korean giant Posco, which in 2005 signed a $12 billion memorandum of understanding with the State of Odisha (then spelt Orissa), to build a 10 mtpa steel plant. In 2012, the company abandoned the project due to delays in obtaining the necessary approvals, and disputes that had arisen in the meantime. Posco is nevertheless present in India with numerous cold-finishing facilities serving customers in the Delhi, Pune, and southern regions, and is currently involved in a 50-50 joint venture with JSW to build a new 6 mtpa plant. The agreement was reached over a year ago, but the production site has not yet been identified. This is Posco’s third attempt to establish a hot-rolling mill that could serve as a reference point for Korean car manufacturers targeting the promising Indian market.
Further ahead is Japan’s Nippon Steel (NS), which, after a failed attempt to reach an agreement with Tata Steel, now operates in a minority (40%) joint venture with ArcelorMittal (AM). AM/NS was established in 2019 through the acquisition of Essar Steel’s plants, with a production capacity of over 7 mtpa. Nippon Steel also aims to support the ambitions of Japanese car manufacturers locally.
The big Indian business groups
The liquid steel production of the top six conglomerates – SAIL, RINL, Tata Steel, AM/NS, Jindal South West (JSW) Steel, and Jindal Steel and Power Limited (JSPL) – accounts for more than half (58%) of India’s total output. Among the major business groups active in 2010, Essar Steel (acquired by AM/NS), as well as Bhushan Power & Steel and ISPAT Steel (both acquired by JSW), are no longer present as independent entities. The acquisition of ISPAT Industries, with its modern Dolvi plant, stands out. Founded by M.L. Mittal in 1984, the company later passed into the hands of his two sons, Vinod and Pramod. After encountering financial difficulties, it was put for sale in 2010. Among those interested in the acquisition were ArcelorMittal (owned by their brother Lakshmi N. Mittal), Tata Steel, and JSPL (owned by Naveen Jindal). In the end, JSW, owned by Jindal’s brother Sajjan Jindal, prevailed and acquired a majority stake in ISPAT for approximately $250 million. At the same time, Japan’s JFE Steel, a leader in grain-oriented steel production, became a 15% shareholder in JSW for over $500 million, thereby injecting fresh capital.
The acquisition of Bhushan is another case highlighting the constraints faced by the Indian industry in its growth process. The company entered insolvency in July 2017. Tata Steel, JSW, and Liberty Steel competed for its acquisition with successive bids, until JSW’s offer of over $2 billion was accepted in October 2018. The bid was formally completed only in September of the following year but was immediately blocked by a pending lawsuit against the former owners for financial crimes. It was not until 2021 that clearance was granted to begin the operational phase. In the meantime, a group of creditors appealed against the acquisition, and the Supreme Court ruled it irregular in May 2025. Only in the following September did JSW obtain approval when the Supreme Court recalled and reversed its previous judgement. Today, JSW is in talks with JFE for the sale of 50% of Bhushan which would enable it to implement its expansion plan to bring the plant to a capacity of 10 mtpa by 2030.
| Company | 2024 Production in India (mt) | Major plants in India | Production capacity (mt/year) |
|---|---|---|---|
| JSW Steel | 26.98 | Vijayanagar, Karnataka | 17.5 |
| Dolvi, Maharashtra | 10 | ||
| Salem, Tamil Nadu | 1 | ||
| Bhushan P&S, Odisha | 4.5 | ||
| TATA STEEL | 20.76 | Jamshedpur, Jharkhand | 11 |
| Kalinganagar, Odisha | 3 | ||
| Meramandali, Odisha | 5.6 | ||
| Gamharia, Jharkhand | 1 | ||
| Neelachal Ispat Nigam Limited (NINL), Odisha | 1 | ||
| SAIL | 19.20 | Bhilai, Chhattisgarh | 6 |
| Durgapur, West Bengal | 1.9 | ||
| Rourkela, Odisha | 4 | ||
| Bokaro, Jharkhand | 4.8 | ||
| IISCO, West Bengal | 2.5 | ||
| JINDAL STEEL | 8.12 | Angul, Odisha | 6 |
| Raigarh, Chhattisgarh | 3.6 | ||
| Patratu, Jharkhand | 1 | ||
| AM/NS INDIA | 7.54 | Hazira, Gujarat | 8.5 |
| RINL | 4.41 | Visakhapatnam, Andhra Pradesh | 6.3 |
Expansion plans
Under its ambitious plans, developed in collaboration with both Posco and JFE, JSW also intends to expand its Dolvi site to a capacity of 15 mtpa and claims it will invest more than $11 billion to raise the capacity of its Maharashtra plant to 25 mtpa within eight years.
JSW is not the only steel company with ambitious expansion plans. According to forecasts by both the Ministry of Steel and specialist consultancies, the target of a national production capacity of 300 mtpa by 2030-31, output of over 250 mt, and per capita consumption exceeding 150 kg is considered achievable. These levels are supported by projected growth in household appliances (+12-15%), automotive products (+6-7%), and construction (+10.8%), as well as the modernisation and expansion of the railway network, demand for gas and oil pipelines, and airport construction. According to the India Brand Equity Foundation (IBEF), this implies investments of around $156 billion; new production capacity installed by the end of 2026 is expected to amount to approximately 40 mtpa.
Tata Steel has just completed the commissioning of a new blast furnace, with investments exceeding $3 billion. The capacity of the Kalinganagar site is expected to increase from 3 mtpa to 8 mtpa, while a new electric furnace is scheduled for installation next year. Tata aims to achieve a production capacity of 40 mtpa by means of acquisitions such as the recent purchase of Neelachal Ispat Nigam Limited (NINL) in Odisha, as well as a $2.5 billion investment in its plants in Wales and the Netherlands.
SAIL, the largest State-owned steel group, has approved an investment of $875 million for 2026, with the objective of reaching a production capacity of 35 mtpa by 2030. All major sites have expansion plans: Rourkela aims to reach 9.4 mtpa, while Bokaro and the West Bengal plants target 7.6 mtpa and 7.1 mtpa respectively.
JSPL’s projects are focused on the Angul site, where a first expansion phase of 6 mtpa is under way and a second phase is planned, with the aim of reaching a total capacity of over 20 mtpa.
As for the AM/NS joint venture, the first phase of expansion at the Hazira site is expected to be completed by 2026, increasing capacity to 15 mtpa, while a second expansion to 24 mtpa is planned, for a total investment exceeding $7 billion. In parallel, AM/NS has acquired land in Andhra Pradesh where it plans to build a new 7 mtpa plant.
All this concerns only the six largest business groups. However, in a phase of strong growth, it cannot be ruled out that new players will seek a seat at the main table. Among them is Evonith Steel, which acquired the Uttam group in 2020, when its capacity was 0.8 mtpa. This is projected to rise to 1.4 mtpa in 2026, with expectation of reaching 6 mtpa within three to five years. Evonith could become the seventh knight of the Indian steel market, with old and new players alike contributing to the contradictory but impetuous development of the Indian steel giant.