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Essar's $18 Billion US Bet: India's Shifting Investment Strategy
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News18•29-09-2026, 11:24
Essar's $18 Billion US Bet: India's Shifting Investment Strategy
- •Essar Group is investing approximately $18 billion (₹1.6 lakh crore) in the US, including establishing a major steel plant in Iowa.
- •This investment signifies a changing strategy for Indian companies, which are now setting up new production capacities in the US rather than acquiring businesses like Chinese firms did.
- •The 10 million-ton capacity steel plant in Iowa aims to start production by 2030 and is expected to create thousands of jobs.
- •Essar is also developing an iron-ore mine in Minnesota, creating a 'mine-to-mill' supply chain for the Iowa plant.
- •The project aligns with the US government's emphasis on domestic manufacturing and tariff policies, incentivizing companies to produce within America.
Key Questions Answered
The Essar Group is investing approximately $18 billion, which is roughly ₹1.6 lakh crore, in the United States.
The steel plant in Iowa aims to produce about 10 million tons of steel annually and has set a target to start production by 2030.
Essar's US company, Mesabi Metallics, is developing a 'mine-to-mill' supply chain where iron ore will be extracted from an iron-ore mine in Minnesota's Mesabi Iron Range and then transported to the Iowa steel factory to produce finished steel.
