Tata Steel CEO and Managing Director T.V. Narendran highlighted challenges in the global steel industry, citing low profit margins driven by China’s aggressive pricing. Speaking at a New Year gathering, Narendran noted that 2023 and 2024 were tough years for steelmakers worldwide due to reduced margins and the lingering effects of China’s COVID-19 restrictions.
Narendran pointed out that global geopolitical events also impact India indirectly, but the most pressing issue remains China’s economic slowdown and its competitive pricing, which he termed as unfair. He urged the Indian government to adopt protective measures, similar to those implemented by countries like the US, Canada, and Europe, to shield domestic producers from cheap imports.
Despite global struggles, India’s steel demand is growing at 8%, and Tata Steel continues to thrive due to its competitiveness and strong domestic demand. However, Narendran acknowledged the challenge of compressed margins and underscored the need for value addition and innovation in the sector.
He emphasized the untapped potential of mineral-rich states such as Jharkhand, Odisha, and Chhattisgarh, advocating for efforts to convert these resources into industries that generate wealth and employment. He also called for more incentives to attract investments, noting that the Indian steel sector invests between ₹40,000 crore and ₹50,000 crore annually.
Narendran highlighted Tata Steel’s achievements, including the commissioning of the country’s largest blast furnace at its Kalinganagar plant in Odisha, despite a challenging year. He also praised ongoing initiatives to improve employee and community welfare, such as building housing and schools.
Regarding the new government in Jharkhand, Narendran said Tata Group has engaged in discussions and expressed its commitment to contributing to the state’s growth. He underscored Jharkhand’s vast reserves of iron ore and coal and its potential to become a hub for steel and automotive industries through focused value addition.
