Tata Steel CEO Foresees Growth in India as Global Steel Faces Profits Decline
The global steel industry is grappling with significant profit challenges, primarily driven by China’s aggressive pricing strategies, according to Tata Steel’s CEO, TV Narendran. The surge in Chinese exports, along with the slow recovery of the Chinese market, has led to tighter margins across the global steel sector, especially in 2023 and 2024. Despite these hurdles, Narendran remains optimistic about India’s steel demand, which is growing at an impressive 8 per cent annually, presenting substantial opportunities for value addition and job creation within the sector.
Narendran highlighted the importance of India’s mineral-rich states, such as Jharkhand and Odisha, as key regions for steel production expansion. He emphasised that these states not only provide abundant raw materials but also present opportunities for building industries that can drive job creation and economic growth. “The growth of the steel industry in India is deeply tied to the potential of these resource-rich states,” he remarked. Tata Steel, one of the largest steel producers in India, has consistently benefited from these local advantages, with strong domestic demand contributing to the company’s profitability despite global challenges.
He also called for greater government support to shield domestic producers from unfair competition, similar to the measures undertaken by nations like the US and Canada. These protections, he argued, would enable Indian producers to maintain a competitive edge in a market that is increasingly affected by global price pressures and fluctuating demand. Tata Steel’s continued profitability in India has also been supported by its ongoing investments, including a significant ₹40,000–50,000 crore annually into the steel industry. One of the standout achievements was the commissioning of India’s largest blast furnace at Tata Steel’s Kalinganagar plant, marking a major milestone in the company’s commitment to expanding production capacity and improving efficiency.
Further reinforcing Tata Steel’s positive trajectory in India, Narendran pointed to the company’s contributions to local communities through infrastructure projects that support employee and community well-being. These initiatives include staff housing, schools, and other social infrastructure. Tata Steel is also in discussions with the newly-formed Jharkhand government to tap into the state’s resources, aiming to bolster growth in the steel and automotive sectors.
