Minnesota is emerging as a heavy hitter in US-India economic relations, with nearly $1.8 billion in greenfield investments driving job creation and industrial growth. The $2 billion-plus Mesabi Metallics project is revitalizing the state’s mining sector while strengthening trade with India. As these economic ties grow, both established industries and indigenous American businesses are set to benefit from expanding opportunities.
With nearly $1.8 billion in greenfield investments between 2003 and 2024, Minnesota has established itself as a significant contributor to US-India economic ties.* Minnesota ranks among the top five states for greenfield investments from India, following Texas, Alabama, New Jersey, and California. Greenfield investments—new ventures where companies establish or expand operations from the ground up—have played a crucial role in boosting Minnesota’s economy and creating jobs. These investments span various industries, from renewable energy and metals to technology and pharmaceuticals, resulting in the creation of an estimated 2,100 jobs in the state, according to fDi Markets’ database.*
Among Minnesota’s most noteworthy investments is Mesabi Metallics Company LLC, a subsidiary of India-based Essar Group and a major player in the state’s mining and iron ore sector. The mining and iron ore industry in Minnesota is valued at just over $4 billion, with the state leading the nation in iron ore production, accounting for 85% of the country’s total output. In 2008, Mesabi Metallics—then a part of Essar Steel Minnesota—invested $1.6 billion into the development of a taconite mining operation and pellet plant in Nashwauk, Minnesota. However, the project faced significant delays due to the company’s bankruptcy, which halted progress for several years. Despite these setbacks, a reorganized and debt-free version of Essar Group has taken the reins to push the project forward, ramping up construction in 2023. While the community has expressed skepticism about the project’s completion, recent developments offer hope. Since May 2023, $113 million in new spending has been allocated, with an active workforce of approximately 400 construction workers on-site daily and 50 full-time employees as of fall 2024. These efforts could revive the Iron Range, an area that has seen very little mining activity since the closure of the Butler Taconite mine 40 years ago.
Now, Mesabi Metallics is finishing what it started with the company reporting a total investment of $1.8 billion to date. An additional $500 to 600 million is expected, bringing the total investment to almost $2.5 billion—making it one of the largest capital investments in Minnesota history. This project includes a beneficiation plant and a pellet plant, each with an annual output of seven million metric tons, designed to process iron ore and produce premium Direct Reduction (DRI) grade pellets. The taconite mine, spanning more than 16,000 acres, will be the first new mining operation and pellet production facility in Minnesota in almost half a century—on track to ship iron ore by 2026. In February 2025, Mesabi Metallics also announced the acquisition of an additional office location in Nashwauk, Minnesota, to accommodate its growing employee base for the project.
With over three million construction man-hours logged to date, Mesabi Metallics’ project is already having a major economic impact. As Kevin McKinnon, Deputy Commissioner of Economic Development at the Minnesota Department of Employment and Economic Development (DEED), stated to Mesabi Metallics during a tour of their facilities that, “Minnesota’s Iron Range is a historic driver of our state’s economy and my visit to Mesabi Metallics illustrated the impact the Range will continue to have.” He further described the economic impact of the project including generating hundreds of well-paying jobs, boosting Minnesota’s exports by supporting the global shift to Green Steel, and increasing funding for school districts through production taxes. This venture is likely to strengthen the state’s mining industry to not only create jobs but also foster long-term economic development, contributing to Minnesota’s competitive position in the global steel market.
Minnesota’s growing ties with India are also reflected in the state’s trade relationship. According to the Trade Partnership Worldwide, Minnesota exported over $668 million in goods and services to India in 2023, supporting almost 12,000 jobs indirectly and directly.** This 40% increase in export-supported jobs over the last eight years underscores the deepening economic connection between the two regions.** A notable example of this expanding trade is the participation of Red Lake Inc., a Native American business venture representing the Red Lake Nation of Chippewa Indians in Minnesota, in a US Department of Agriculture (USDA) trade mission to India in April 2024. As the only tribal business in the delegation, Red Lake Inc.—which encompasses 13 businesses selling agricultural products like wild rice, seafood, jams, jellies, and pancake mix—highlights the growing international presence of Minnesota’s indigenous communities. This effort was greatly supported by Minnesota Senator Tina Smith, who had advocated for more tribal representation in trade missions under the 2018 Farm Bill. This trade mission exemplifies the expanding role of indigenous businesses in Minnesota’s broader economic strategy, strengthening not only trade ties with India but also highlighting the state’s commitment to inclusive economic growth that benefits all communities.
Looking forward, the economic bonds between Minnesota and India are poised to grow even stronger. With ongoing investments like those from Mesabi Metallics and growing trade relationships, Minnesota is positioning itself as a key partner in India’s global economic footprint.
*Sourced from fDi Markets (2003-2024)
**Sourced from Trade Partnership, Washington DC (2023)
Emma Potts is a Spring 2025 Young Professional at the East-West Center in Washington. Emma recently graduated from Columbia University, majoring in Political Science and East Asian Languages & Cultures.