13 hours Ago By [email protected] (MENAFN)
Indian metal companies are significantly expanding their operations, driven by robust domestic demand, even as they navigate complex global trade dynamics. Industry leaders such as Vedanta and JSW Steel are at the forefront of this growth, unveiling ambitious plans to scale up production capacities across various segments. Vedanta, a prominent conglomerate, has announced a $20 billion expansion strategy encompassing sectors like zinc, aluminium, copper, iron, steel, oil, gas, and power.
This initiative includes seeking global partnerships to bolster its ventures. The company is also in the process of restructuring into four distinct entities: Vedanta Aluminium, Oil and Gas, Power, and Iron and Steel. Notable investments involve allocating $2 billion to $2.
5 billion for enhancing Hindustan Zinc's production and $5 billion aimed at increasing oil output through Cairn India. Additionally, Vedanta plans to double its power portfolio and explore opportunities in nuclear energy, targeting 5 GW of nuclear power for internal consumption within India. JSW Steel, another major player, is pursuing an aggressive expansion trajectory.
The company aims to elevate its production capacity from the current 27.5 million tonnes per annum to 38.5 mtpa by the fiscal year 2024-25.
This growth strategy includes commissioning iron ore and coal mines in Karnataka, Odisha, and Goa, which is expected to reduce operational costs. JSW Steel is also investing in renewable energy projects to further decrease production expenses. The company has set a target to reach a 50 mtpa capacity before 2030, reflecting confidence in sustained domestic demand growth.
Tata Steel is also contributing to the industry's expansion by adding 5 million tonnes to its existing 21 mtpa capacity. Similarly, Jindal Steel and Power plans to increase its capacity by 6 million tonnes, building upon its current 9.6 mtpa.
Collectively, these initiatives represent a substantial investment aimed at capitalizing on India's burgeoning steel consumption, which is projected to grow between 8% to 10% in the fiscal year 2024-25. The Indian government's policy measures are playing a crucial role in supporting domestic manufacturers. The“Domestically Manufactured Iron and Steel Products Policy 2025,” effective from April 1, mandates that all government ministries and agencies prioritize locally produced steel products.
This policy aims to protect the domestic steel industry from the influx of cheaper imports, particularly from countries like China, South Korea, and Japan. It also restricts the use of foreign certifications or stringent technical specifications that could disadvantage local suppliers and bars foreign entities from participating in Indian tenders if their home countries impose procurement restrictions on Indian mills. Despite these protective measures, Indian steelmakers face challenges from international trade policies.
The United States has imposed a flat 26% reciprocal tariff on all Indian exports, citing high Indian tariffs on U.S. goods.
This move is expected to impact key Indian export sectors, including electronics, gems and jewellery, and certain aluminium and auto parts. However, pharmaceuticals and energy products are exempt from these tariffs. In response, India is engaging in negotiations with the U.
S. for a new trade deal and has expressed willingness to reduce tariffs on $23 billion worth of U.S.
imports. Additionally, India is exploring opportunities to expand exports in sectors like textiles, apparel, footwear, and steel, particularly as higher tariffs are levied on Chinese goods. MENAFN07042025000152002308ID1109397408 Legal Disclaimer: MENAFN provides the information “as is” without warranty of any kind.
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