Steel target set, raw material missing: Vedanta chief spells out what India needs to do

Vedanta Group Chairman Anil Agarwal on Wednesday called for massive investments in India's steel sector, stressing the need for large companies to drive production and meet the ambitious goals set by Prime Minister Narendra Modi.

"It is the dream of our Prime Minister to produce 300 million tonnes of steel in India. For this, we need 800 million tonnes of iron ore," Agarwal wrote on X. "At our current production level, we will have to import 75% of our iron ore requirement."

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He argued that the key to achieving this goal lies in the establishment of large-scale companies capable of producing 200-300 million tonnes of iron ore annually. Globally, he added, just 4 or 5 companies like Vale, BHP, Rio Tinto, and Fortescue produce 70%-80% of the world's iron ore.

"We have no option but to have 3 or 4 companies which can each make 200-300 million tonnes," he said, noting that this sector requires significant infrastructure investment. "In my estimate, it will take an investment of $20 billion - $25 billion or more."

The Vedanta chairman further said that India's geology and quality of ore are the same or even better than where/what the companies above are producing. "The world is moving very fast to make the simple production of minerals and hydrocarbons. Because it is the need of the hour. You may have seen the US Government has just announced that clearances are self-certified for increasing oil and gas production," he added.

Agarwal's comments come at a time when India's iron ore imports are set to rise to a seven-year high in 2025, driven by a shortage of high-grade ore and growing demand from steelmakers like JSW Steel.

India's steel industry, currently dominated by Tata Steel, JSW Steel, and SAIL, has been facing increasing pressure on its iron ore supplies. Imports of iron ore are forecast to reach between 12 million and 14 million metric tons in 2025-26, more than doubling from the previous year, Reuters reported on March 24.

The bulk of India's iron ore imports in the fiscal year originated ​from Brazil and Oman, which together accounted for about 70% of total shipments, according to the report.