Global mining major BHP Group expects India to nearly double its steel production capacity by 2030, positioning the country as one of the most important growth markets for the global steel and raw materials industry amid slowing demand growth in China.
According to BHP, India’s rapid urbanisation, infrastructure expansion, industrial development and manufacturing growth are driving a sustained increase in steel consumption. The company believes these structural factors will support a significant rise in steelmaking capacity over the coming years, making India a key pillar of future global steel demand.
India is already the world’s second-largest crude steel producer and has set ambitious targets for expanding domestic production. The country is working towards increasing steelmaking capacity to around 300 million tonnes by 2030, supported by large-scale investments from both public and private sector steelmakers.
BHP noted that the expansion of India’s steel sector will significantly increase demand for key raw materials, particularly iron ore and metallurgical coal. The miner expects India’s metallurgical coal requirements to rise substantially over the coming decades as new steelmaking facilities are commissioned and existing plants expand capacity.
The company’s outlook reflects a broader shift in the global steel industry, where India and Southeast Asian economies are increasingly being viewed as the next major centres of growth. While China remains the world’s largest steel producer and consumer, slower economic growth and weakness in its property sector have prompted global mining companies to focus more closely on emerging demand centres.
Industry analysts expect India’s steel demand to remain supported by investments in highways, railways, urban infrastructure, renewable energy projects, housing, and manufacturing. These sectors are anticipated to drive long-term consumption growth and encourage continued capacity expansion across the domestic steel industry.
With multiple expansion projects already underway and additional investments being planned, India is expected to play an increasingly important role in shaping global steel demand over the next decade, reinforcing its position as one of the fastest-growing steel markets in the world.
