Chairman of Vedanta Ltd. Anil Agarwal has stressed the need for large-scale investments in iron ore production to support India’s ambition of becoming self-sufficient in steel. In a post on X on Wednesday, Agarwal said India would require nearly 800 million tonnes of iron ore to meet the goal of producing 300 million tonnes of steel, a vision articulated by Prime Minister Narendra Modi. At current production levels, he warned, the country may have to import up to 75% of its iron ore requirement. 

Highlighting the global landscape, Agarwal said a handful of mining giants — including Vale, BHP, Rio Tinto, and Fortescue — account for 70–80% of global iron ore production. According to Agarwal, India needs at least three to four large companies capable of producing 200–300 million tonnes each to compete at scale. 

Sector requires significant infrastructure spending

The sector would require significant infrastructure spending, with Agarwal estimating investments of $20–25 billion or more to build capacity. He said India’s geology and ore quality are comparable, if not superior, to global benchmarks, making the case for accelerated domestic production. 

He also pointed to global trends, noting that countries are fast-tracking mineral and hydrocarbon production to meet rising demand and cited recent moves by the U.S. government to ease regulatory processes for boosting oil and gas output. 

Scaling up mining would generate large-scale employment

Agarwal highlighted that scaling up mining would not only support industrial growth but also generate large-scale employment and improve livelihoods in resource-rich regions. 

A few days ago, Agarwal called for an overhaul and privatisation of India’s defence manufacturing ecosystem. He said the country’s 41 ordnance factories should be modernised and opened up to private sector participation to enhance capacity and efficiency. 

He said that India should focus on building a robust, export-oriented defence manufacturing base across land, air, and maritime segments, leveraging its existing infrastructure to strengthen both domestic security and global competitiveness.