Tata Steel CEO T.V. Narendran projects 7-8% growth for India's steel consumption, driven by strong domestic demand. He says rising global tariffs make localisation of supply chains inevitable and urges investment in domestic manufacturing.
Strong Domestic Demand to Fuel Steel Growth
India’s steel consumption is expected to grow 7-8 per cent or more in the coming years, supported by strong domestic demand, while rising global tariffs and trade barriers make greater localisation of supply chains and investment in domestic manufacturing “inevitable,” Tata Steel CEO and Managing Director T.V. Narendran said.
Speaking to ANI on the sidelines of IFQM (Indian Foundation for Quality Management) Symposium 2026, the Tata Steel CEO said changes in GST have helped drive growth in the automobile sector, while construction demand, particularly from industrial projects and infrastructure, has remained strong. He also pointed to more balanced growth across urban and rural markets, which could support steel consumption growth in the coming years. “We are also seeing more balanced growth in both urban and rural markets. That's why you see steel consumption growing at about 7-8% or even more in the coming years,” he said stressing, “...for the next 3-4 years, we're very positive about the steel industry.”
Localisation 'Inevitable' Amid Global Trade Barriers
On rising global tariffs and trade barriers, Narendran said greater localisation of supply chains is becoming inevitable as countries and companies increasingly prioritise resilience over simply minimising costs. "I think it is inevitable because more and more countries, companies, and industries are looking at building local supply chains and building resilience and not just optimizing on costs.”
He said India should encourage companies seeking access to its growing market to invest and manufacture domestically, create local jobs and serve Indian consumers from within the country. “If you want to participate in the market opportunity in India, please invest in India and create jobs in India and serve the Indian market,” he noted.
India's Green Steel Initiative
Commenting on India’s green steel initiative, Narendran said the country is still at an early stage in its transition towards green steel. “I think we need to look at how the other economies or the geographies like Europe are driving it. You need policy support, you need customers willing to pay more, and you need the industry to invest in it." (ANI)
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