Japan's Nippon Steel says it will invest more in its business in India in an attempt to tap into expected growth of the South Asian country's market.

The company said on Wednesday that the new investment will be made for a joint venture with the world's leading steelmaker, ArcelorMittal.

It will be worth about 7.4 billion dollars and include two new blast furnaces, among other facilities. The joint venture plans to launch some of the facilities in the second half of 2025.

The investment will allow Nippon Steel to raise its group's global output by about 10 percent.

Nippon Steel Executive Vice President Mori Takahiro hinted at even more investments in India. He said the company will consider further increases in production capacity to take advantage of rising demand for steel in India.

High levels of economic growth are expected in India, whose population is predicted to be the world's largest next year, surpassing that of China.

Meanwhile, Japan's crude steel output last year dropped about 20 percent from its peak in 2007. Domestic demand is expected to fall as well.