CONGRESS QUESTIONS INDIA’S PRIVATE INVESTMENT CLIMATE AS ESSAR EXPANDS US STEEL BET

September 29, 2026

The Congress has questioned the state of private investment in India after Essar-backed Mesabi Metallics announced an $18-billion investment programme in the United States. The announcement has prompted the opposition party to contrast the scale of the overseas project with its concerns about private-sector investment and industrial expansion within India.

The investment involves a proposed $15-billion integrated steel complex in Iowa, linked to an existing iron-ore and pelletising operation in Minnesota. The project is expected to create thousands of jobs and establish an integrated American steel supply chain, with production planned to begin around 2030.

Congress leaders have used the development to question the Narendra Modi government's economic policies and its record in attracting large-scale private investment. The party has argued that greater emphasis should be placed on creating conditions that encourage Indian businesses to undertake major industrial projects within the country.

The Essar-backed project is being developed in the context of the United States' efforts to expand domestic steel production and reduce dependence on imported steel. The company has said the investment will connect locally mined iron ore with steel manufacturing in the US.

The project also highlights the growing importance of tariff and industrial policies in shaping international investment decisions. The US administration has promoted domestic manufacturing through higher tariffs on imported steel, while the Essar-backed venture is designed around production entirely within the American supply chain.

The Congress's criticism has therefore centred on the contrast between substantial Indian-linked capital being committed to a major overseas industrial project and the level of private investment taking place domestically. The debate comes amid wider discussion over India's investment environment, manufacturing growth and the government's economic policy framework.