Spearheaded by market leader JSW Steel, steel majors Tata Steel, Jindal Steel, and state-owned Steel Authority of India will be spending up to 65% more this year as compared to the last. Capex plans of these companies have remained undeterred despite the near-term cost pressures stemming from the West Asia crisis.
While specific investment numbers for AM/NS India were not available, the company is likely to spend at least ₹10,000 – 15,000 crore this fiscal, analysts said. The joint venture between ArcelorMittal and Nippon Steel is setting up a greenfield plant in Andhra Pradesh apart from expanding capacity at its plant in Hazira.
A response sent to the company remained unanswered until the publication of this report.
India, which appears to be largely insulated from direct spillovers of the conflict in West Asia, is set to maintain its position as the world’s fastest-growing major steel market, the World Steel Association said in its latest forecast. It sees demand in India growing by 7.4% this year, and further accelerating to 9.2% in 2027.
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In FY26, India had a crude steel production capacity of around 220 million tonne, while it produced around 168 million tonne of steel.
Expansion Target
As per the National Steel Policy, India aims to have a production capacity of 300 million tonne by 2030.
“India is going through a nation-building phase with steel being a key building block for growth,” Jayant Acharya, the chief executive officer of JSW Steel, said recently. “This creates a long runway for steel demand to outpace the real GDP growth in the country,” he said.
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Acharya sees India’s share of steel consumption rising to around 16% in a decade from 9% currently, and said that the growth in production is likely to lag growth in consumption.
The record capex by steel-makers is coming on the back of robust profits and cash flows in fiscal 2026. While JSW Steel’s consolidated profit was at an all-time high in fiscal 2026, that of Tata Steel and Steel Authority of India were at a four-year high.
“Steel demand in India is expected to remain reasonably strong, supported by infrastructure development and construction activity,” Gautam Malhotra, the chief executive officer of Jindal Steel said. “Steel prices have shown recovery in recent months and are expected to remain supportive in the near term,” he said.