THEBUSINESSBYTES
BUREAU
SEOUL/NEW
DELHI, APRIL 20, 2026
In
a landmark move set to reshape India’s industrial landscape, South Korea’s
POSCO Group and India’s JSW Steel have sealed a massive $7.3 billion (10.7
trillion won) joint venture to establish an integrated steel plant in India,
marking one of the largest foreign investments in the sector in recent years.
The
agreement, formalised in India in the presence of POSCO Chairman Chang In-hwa
and JSW Steel CEO Jayant Acharya, will see both companies holding equal 50 per cent
stakes in the venture. The project aims to build a state-of-the-art steel mill
with an annual production capacity of 6 million tonnes, to be located in
Odisha, with completion targeted by 2031.
POSCO
alone will invest approximately 5.3 trillion won, underscoring its long-term
commitment to India as a strategic manufacturing and supply chain hub. The
proposed facility will be a fully integrated steel plant, covering the entire
production cycle at a single site — enhancing efficiency, cost competitiveness,
and technological advancement.
“This joint investment will combine POSCO’s
advanced steelmaking technology with JSW Group’s strong local expertise,” said
POSCO CEO Lee Hee-geun, highlighting the partnership’s potential to generate
future value while contributing to industrial growth in both nations.
The
deal builds on earlier engagements between the two companies, including a
memorandum of understanding signed in 2024 and a subsequent non-binding
agreement last year, signaling steady progress toward this strategic
collaboration.
Beyond
corporate synergy, the agreement aligns with broader geopolitical and economic
priorities. South Korean President Lee Jae Myung, following his summit with
Indian Prime Minister Narendra Modi in New Delhi, emphasised the importance of
strengthening bilateral cooperation in energy and critical supply chains amid
global uncertainties, particularly those linked to tensions in the Middle East.
Both
leaders have reiterated their focus on expanding trade and investment ties
while exploring collaboration in emerging sectors such as critical minerals,
artificial intelligence, finance, and shipbuilding. Ensuring stable access to
key raw materials, including naphtha, remains a central priority.
The
POSCO-JSW venture is expected to significantly boost India’s steel capacity,
reinforce its position as a global manufacturing hub, and generate substantial
employment in eastern India — particularly in Odisha, a mineral-rich state
increasingly attracting large-scale industrial investments.
