India to Engage Argentina, Indonesia and Oman for Steel Raw Material Supply

India is preparing to strengthen its raw material supply chain for the steel sector by initiating discussions with Argentina, Indonesia and Oman. The move comes as the country looks to secure stable access to essential inputs such as coking coal, iron ore and critical minerals, while also exploring opportunities for technology collaboration.

The discussions are expected to take place at a major global steel summit next month, where policymakers and industry leaders will gather to address challenges and opportunities in the sector. The initiative reflects India’s proactive approach to ensuring long-term resource security as steel production continues to rise.

India is currently the world’s second-largest crude steel producer after China, and its demand for raw materials has been increasing steadily, driven by infrastructure development, urban expansion and industrial growth. However, the country remains heavily dependent on imports for several key inputs, making supply diversification a strategic priority.

Indonesia, which holds one of the largest reserves of nickel ore, plays a crucial role in supporting stainless steel production. Argentina is a significant source of lithium, a critical mineral used in batteries and renewable energy storage systems. Oman, along with Brazil, is an important supplier of iron ore to India.

By engaging with these countries, India aims not only to secure raw material supplies but also to build stronger partnerships that can support technology transfer and improve domestic capabilities in mining and processing. This aligns with the government’s broader push to strengthen the “Make in India” initiative and reduce dependency on external sources.

The move also comes at a time when global supply chains are facing disruptions due to geopolitical tensions and rising logistics costs. Additionally, India’s steel sector is navigating challenges such as fluctuating energy prices and supply constraints, particularly in gas availability.

Industry experts believe that securing long-term supply agreements and diversifying sourcing strategies will be critical for sustaining growth in India’s steel sector. As the country continues to expand its production capacity and boost exports, ensuring a reliable supply of raw materials will remain a key priority.