Booming Steel Industry of India

Rich in natural resources, India has been successfully making the most of it in recent times. The gradual growth of the steel industry in the country apparently testifies the fact.

The annual review of steel industry by the Press Information Bureau states that India has topped as the second largest producer of crude steel as well as the fourth largest producer of steel in the global market. Increasing demand of steel in the domestic and international market has led to the huge growth in production. It is expected that steel will be in high demand in various sectors such as ground transportation, construction, railways and housing sectors to name a few, in the coming years.

This rising Indian steel industry dates back to 1950’s with the construction of steelworks in Rourkela, Orissa, a significant venture of the then Indian government and the German companies Demag AG and Fried Krupp. Presently this Rourkela Steel Plant (RSP), which is a unit of the Steel Authority of India Ltd., (SAIL), has a successful capacity of about 2 million tonnes of resources. Other notable steel plants built in the early days are Bhilai and Durgapur steel plants. Till 1990’s, the steel industry was only controlled by government policies. However, with the advent of free economic policies in the subcontinent, the steel market has been significantly growing and matching with global standards. Over a span of almost twenty years, there seems to be rapid growth in the Indian steel market.

At the moment, SAIL, Tata Steel, RINL, ESSAR, ISPAT and JVSL have emerged as major players not only in the country but also in the global steel business. SAIL’s total
production rose to 28.49 million tonnes in April-September 2009. In between January –June 2009, SAIL earned more profits than Nippon, ArcelorMittal, Bao Steel and Posco.

It has been predicted by National Steel Policy that Indian steel production is supposed to reach 110 million tonnes by 2019-20. The market scenario clearly depicts that if this situation persists than India is sure to reach the expected production units on time.

This situation is not only rewarding for the steel industry but also to the mass people. If the industry grows day by day, there will be more and more job opportunities in this sector.