India’s two biggest steelmakers, Tata Steel and Hindustan Steel, have signed a deal for production in the US.
The deal, which is likely to see the two giants expand into a joint venture in 2018, is expected to see India and US share a new product that would be made in India, India’s Tata Steel chief executive, Rishabhai Steel, told reporters on Friday.
The move comes just months after India’s Prime Minister Narendra Modi launched the countrys first steel plant in the United States, a move which has drawn praise from American steelmakers.
India’s steelmakers have struggled to gain access to the market after the global recession in the early years of the century, as they struggle to find investors.
The steel sector was once India’s fastest-growing industry, but its growth slowed to less than 10% between 2008 and 2020.
As a result, steel producers in India have had difficulty making any significant investments in new plants.
India is home to about 80% of the worlds steel production, but imports are at a record low.