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BHP expects a jump in raw material demand as India's steel growth continues

Global mining and energy giant BHP has predicted that India's rapidly growing steel industry will significantly increase demand for iron ore, coke, and potash in the coming years.

BHP expects a jump in raw material demand as India's steel growth continues

According to the company’s latest forecasts, India’s annual steel demand could increase up to fourfold in the coming decades, which would position the country in a more critical role in the global metals and mining markets.

India is already the world’s second-largest steel producer. This strong demand is supported by government infrastructure investments, rapidly rising urbanization, and expansion in the manufacturing sector. BHP notes that this growth is expected to accelerate further as India continues its economic development and industrial modernization.

While demand for iron ore and coking coal—the essential raw materials for steel production—is expected to rise sharply, long-term consumption of potash, which is critically important for agriculture and industry, is also projected to increase.

Experts point out that, although India is a resource-rich country, factors such as logistical bottlenecks, reliance on coking coal imports, and environmental concerns are likely to continue playing a decisive role in its supply chains.

Supported by the National Steel Policy and foreign partnerships, this growth is making India a strategic investment hub for both domestic and international raw material suppliers. The rising demand for raw materials is expected to encourage new exploration activities, investments in mining infrastructure, and the expansion of trade flows, positioning India at the center of global commodity demand in the coming decades.

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