Sandeep Poundrik, Deputy Secretary of the Ministry of Steel leading India as the world's second-largest steel producer, recently suggested a "Korea-India steel alliance" in an interview with ChosunBiz, directly mentioning POSCO and Hyundai Motor to combine Korea's advanced technology with India's production capacity. This proposal presents a way for both India and Korea to breathe a little easier amid the chaos of a restructured global supply chain due to U.S.-China tensions.
The emphasis on cooperation with Korea is grounded in India's ambitious vision of being a "self-reliant global factory." He emphasized throughout the interview that India aims to be "India No. 1" rather than "the second China." He pointed out that while China used low labor costs as an advantage to serve as a global export processing hub, India clearly pursues qualitative growth.
"India does not aspire to become the 'next China.'Realizing the longing of Indians to become a developed nation by 2047 is the only goal."
This confidence stems from the achievements of the 'Make in India' policy promoted by Prime Minister Narendra Modi over the past decade. According to Poundrik, India's crude steel production capacity has nearly doubled from 100.9 million tons to 200 million tons over the past decade. During this time, India solidified its position as the world's second-largest steel producer. The manufacturing industry accounts for 17% of India's gross domestic product (GDP), and the jobs created directly and indirectly in the steel sector amount to 2.5 million.
He assessed that India has also achieved a qualitative transition through technological independence, going beyond mere quantitative expansion. In particular, the "Production-Linked Incentive (PLI)" scheme introduced to reduce import dependency serves as evidence of India's ambitions for the development of its steel industry. This policy encourages the production of high-value steel products that were previously imported, directly in India. As sales of specific special steel products produced in India increase, the Indian government provides subsidies in proportion. Poundrik noted, "Through this scheme, we have already attracted investment worth $5.1 billion (about 7 trillion won)," expressing his intention to develop manufacturing technologies for special steels used in advanced industries such as electric vehicles and defense.
Poundrik identified India's greatest competitive strengths as its strong domestic market, abundant iron ore, and skilled workforce. He diagnosed that these factors have established a foundation for stable growth that is not easily shaken by external shocks. However, he acknowledged that special steel technologies possessed by Korea are absolutely necessary in the fields that India is focusing on developing through the PLI scheme, such as electric vehicles and advanced electronics.
The cooperation between the two countries is described as the optimal combination of India's infrastructure strengths and Korea's technological capabilities. He evaluated, "Hyundai Motor's successful listing on the Indian stock market is a strong model case of industrial cooperation between the two countries." He added, "Cooperation between the two countries is a strategic choice to diversify the global supply chain and enhance economic security in the era of U.S.-China tensions."
He also showed a proactive willingness to improve bureaucratic challenges and insincerity, often cited as chronic problems in India. These issues are among the main reasons foreign investors hesitate to invest in India. Poundrik stated, "We are forming a task force dedicated to addressing these issues to process permits quickly, and we hold the 'Bharat Steel Conference' every year to communicate directly with state governments to break down administrative barriers." This demonstrates that India is taking concrete steps beyond mere declarations to improve the investment environment.
The following is a Q&A with Poundrik.
―The 'Make in India' policy has reached its 10th year. What changes has it brought to the steel industry?
"India's crude steel production capacity has grown from 100.9 million tons to 200 million tons over the past decade, making it the world's second-largest producer. This aligns with the goal set forth in the 'National Steel Policy (NSP) 2017' to achieve a production capacity of 300 million tons by 2030. The steel sector currently supports the manufacturing industry, which accounts for 17% of India's GDP, creating 2.5 million jobs. Particularly, through the 'Special Steel PLI' scheme aimed at reducing import dependency, we have attracted investments worth 440 million crore rupees (approximately $5.1 billion) so far."
―Many see India as potentially becoming the 'second China.' What is India's competitive advantage compared to China?
"India does not seek to compete with any specific country or to become the 'next China.' We focus on realizing our own goals and aspirations. India's competitive advantages stem from its strong domestic market, cost efficiency derived from abundant iron ore reserves, and excellent technical experts along with friendly government policies. Technically, Indian steel corporations are world-class. According to the World Steel Association, two Indian companies are among the top 10 producing companies in the world."
―What role does the steel industry play in the 'Amrit Kaal' vision of becoming a developed nation by 2047?
"The 'Amrit Kaal' vision is a plan to make India a developed nation by 2047. The steel industry plays a foundational role in supporting high-quality infrastructure, manufacturing, and strategic sectors. The government's ultimate goal is not merely to increase production volume. It aims to achieve self-sufficiency in all grades of steel, meet increasing domestic demand, and achieve quality and safety standards that align with global technical standards. To this end, we are focusing on product diversification, quality improvement, and R&D-based innovation. As a result, we have advanced to the level of using Indian-made steel in national projects like Chandrayaan and INS Vikrant."
―What cooperation do you expect with Korean corporations? What specific opportunities are there?
"India's high-growth sectors, such as automobiles and consumer goods, provide tremendous opportunities for Korea. In particular, corporations like POSCO have the chance to establish production facilities for special steels needed in these high-growth sectors locally in India. After successfully listing on the Indian stock market, Hyundai Motor has solidified its position as a strong model case in the industrial cooperation sector between the two countries. The Indian government welcomes various partnerships, including technology transfer, joint ventures (JVs), and R&D cooperation. We particularly wish to strengthen steel localization in advanced technology sectors by collaborating not only with large Korean corporations but also with small and medium-sized enterprises."
―What efforts are being made to address bureaucratic issues or infrastructure barriers that concern foreign investors?
"The Indian government has formed a dedicated task force to address these issues and to expedite legal and environmental approval processes. They are also fostering smooth mining operations by introducing progressive reforms in mineral regulation. Additionally, we hold the 'Bharat Steel Conference' annually, where senior government officials and stakeholders discuss administrative, regulatory, and infrastructure barriers directly."
―ESG is a hot topic. Please explain India's designed 'green steel' roadmap.
"India aims to reduce carbon intensity by more than 45% by 2030 and achieve net zero by 2070. This is set as a national goal, and in September, we announced the 'Green Steel Sector Roadmap.' Last December, we introduced the world's first 'Green Steel Classification System,' establishing a framework for green steel production and market creation. As part of the 'National Green Hydrogen Mission,' we have approved five pilot projects for steel production utilizing hydrogen, ramping up efforts for this initiative."
―Lastly, how do you see Korea and India growing together as 'special strategic partners'?
"Technological cooperation, innovation, and complementary strengths are key. Korea's leadership in high-quality, sustainable steel manufacturing strategically aligns well with India's growth sectors and high-value-added manufacturing. Cooperation between the two countries through joint ventures, R&D, and investments not only promotes economic growth but also diversifies the global supply chain and enhances economic security. India is committed to strengthening this partnership to envision a stable and prosperous future for both countries."