en.Wedoany.com Reported - Tata Steel has completed the expansion of its integrated steel plant in Kalinganagar, doubling its capacity a decade after commissioning. As demand slows in China, India is emerging as a major growth driver for the steel market.
India's domestic steel demand is supported by Prime Minister Narendra Modi's "Make in India" national initiative, which aims to position the country as a key global industrial hub. The Indian government has set a target of increasing steel production to 500 million tonnes by 2047. For comparison, India's steel output in 2025 is approximately 165 million tonnes, while China's stands at 961 million tonnes.
Experts point out that India will not become "another China," and its steel industry will follow its own development model. India's steel sector is primarily driven by private investment, whereas China's expansion has been largely fueled by state-owned enterprises.
Major steel companies are ramping up capacity. Tata Steel plans to increase its total crude steel output to 40 million tonnes per year by 2030. JSW Steel aims to raise its capacity to 80 million tonnes. According to Wood Mackenzie, India will add 147 million tonnes of steelmaking capacity over the next decade, requiring investments exceeding $125 billion.
The industry's growth is closely tied to large-scale infrastructure projects. In the current fiscal year, the Indian government has allocated 12.2 trillion rupees ($129 billion) for infrastructure, including the construction of the country's first high-speed railway connecting Mumbai and Ahmedabad.
Raw material supply is one of the main challenges facing India's steel industry. India has abundant iron ore reserves but faces a severe shortage of coking coal. Imports of coking coal are projected to rise from 81 million tonnes in 2025 to 115 million tonnes by 2030. India is actively diversifying its supply sources, procuring coal not only from Australia but also from the United States, Canada, Russia, and Mongolia, while developing projects in Mozambique.
Major Indian steel companies have stated that they do not intend to replicate China's overcapacity model or become major exporters of cheap steel. The new capacity will primarily serve rapidly growing domestic demand, which is underpinned by urbanization, rising household incomes, and large-scale infrastructure construction. Tata Steel's management believes that India's supply-demand balance will be more sustainable than China's.
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