ArcelorMittal Nippon Steel (AM-NS) has announced a massive investment [1] of ₹2.6 lakh crore ($30 billion) in India over the next decade, aiming to boost its steel production capacity significantly. The joint venture, which currently produces 9.6 million tonnes per annum (MTPA), plans to expand this to 15.6 MTPA by the end of the fiscal year, with a further goal of reaching 40 MTPA.
The company sees immense growth potential in India, citing the country’s relatively low per capita steel consumption compared to global standards. While India’s steel consumption stands at around 94 kg per capita, it remains far behind nations like China (660-670 kg), the US (600-700 kg), Japan (800-900 kg), and South Korea (1,100 kg). AM-NS believes this gap presents a strong opportunity for expansion.
The investment aligns with the Indian government’s push for infrastructure development under the ‘Viksit Bharat’ program, which aims for significant economic growth by 2047. AM-NS officials expressed optimism about India’s economic prospects despite global trade uncertainties, including tariff decisions by the US administration.
The company entered the Indian market in 2019 by acquiring Essar Steel India through the Insolvency and Bankruptcy Code (IBC) process in a ₹42,000 crore deal. Since then, it has steadily expanded its operations, reinforcing its commitment to India’s growing steel industry.
This investment will strengthen India’s steel sector and assist in job creation and economic development.
Sources:
[1] Arcelormittal Nippon Steel to Invest Rs 2.6L Cr to Up Capacity https://timesofindia.indiatimes.com/business/international-business/arcelormittal-nippon-steel-to-invest-rs-2-6l-cr-to-up-capacity/articleshow/120362591.cms