## Steel Investment Falls Short in India
Leading Indian steelmakers fell short of their investment target for the fiscal year ending March 2024. This shortfall was primarily due to delays in importing machinery from China and securing visas for Chinese experts.
The government launched a production-linked incentive program in 2020. Under this program, 27 steelmakers, including JSW Steel Ltd, Tata Steel Ltd, and ArcelorMittal Nippon Steel Ltd, signed agreements with the government. These agreements promised an investment of 210 billion rupees ($2.52 billion) in the 2023/24 fiscal year.
However, steel companies managed to invest only 150 billion rupees. This slowed down capacity expansion in India, the world's second-biggest crude steel producer, despite strong domestic demand.
Steel companies faced difficulties in importing machinery from China and securing visa clearances for Chinese experts for over six months. Some steel mills that received equipment on time still couldn't get Chinese experts to work on new projects.
The Indian government has issued guidelines to facilitate visa clearances for Chinese engineers. However, bilateral ties between China and India remain strained, especially since the 2020 border clash that resulted in casualties on both sides.
Despite these challenges, a surge in economic activity and infrastructure development has encouraged steelmakers to invest and boost capacity. This is to take advantage of rising demand in India, even as consumption falls in Europe and the United States.
Prime Minister Narendra Modi's government is keen to boost the production of high-end speciality steel and value-added steel products. These include coated and alloy steel and electrical steel used in various sectors like defense, space, power, automobile, and capital goods.