India's Steel Industry Poised for Major Growth
India's steel industry is gearing up for considerable growth with plans to add 23 million tonnes of capacity by FY27. Driven by strong domestic demand, major players like JSW, JSPL, and Tata Steel are leading this expansion, positioning India's steel sector as a globally competitive force.
- Country:
- India
India's steel industry is on the cusp of significant growth, set to add approximately 23 million tonnes of crude steel capacity between fiscal years 2024 and 2027, as forecasted by a recent Nomura report. The industry's compound annual growth rate is projected at 4.8%, in line with its historical growth patterns from FY15 to FY24.
Notably, the expansion spearheaded by giants JSW, JSPL, Tata Steel, and ArcelorMittal & Nippon Steel will contribute significantly, accounting for 87% of the forthcoming capacity increase. JSW Steel aims to add 7 million tonnes by FY28, growing at 5% CAGR, while JSPL targets a 6.3 million tonne addition by FY27 with an 18% CAGR.
Despite these ambitious expansions, the demand for steel is expected to outpace capacity additions, potentially improving the balance of domestic supply and demand. Such dynamics suggest a decreased reliance on exports. Analysts highlight that India's steel producers are competitively positioned globally due to lower labor and iron ore costs, with growth largely fueled by brownfield projects and robust internal demand.
(With inputs from agencies.)
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