Steel intake of a country is considered as a major aspect for measuring the economic development. All leading industry ecosystems depend on the steel industry because the advancement of many of these has been accelerated by the toughness and strength of the steel industry throughout the development process. India is also one of these countries whose industrial growth is directly dependent on the steel industry.
Steel consumption is taken as an important part of rising economy and a living culture of any country. It is a leading product of complex and big industry which has strong linkages that are forward and backward in terms of revenue generation and material. Steel is a necessary element for any modern economy to grow and is considered as the blood of human civilization.
Over the years steel has gained immense importance and is used in number of sectors such as construction, urban infrastructure, housing etc. which are taken into consideration while calculating development of a country. Steel is also used by industries like power generation, fertilizers and petrochemicals.
Demand of steel industry is derived from other important sectors like infrastructure, aviation, engineering, construction, automobile, pipes and tubes etc. while the Indian economy hovers for its next wave of advancement under the reforms being discharged in the last one year, tremendous opportunities lies for the Indian industry to prosper and rise aggressively.
Currently India is ranked 4th in the production of crude oil, knocking to be the 3rd in the list and is expected to be ranked 2nd by the end of 2020. There has been increase in the steel production from 81 million in 2013-14 to 88 million in 2014-15 and along with it capacity has also increased from 100mt to 110mt respectively. Contribution of steel industry in the country’s GDP is near to 2% and it provides employment to over 6 lakh people.
The formation of new state of the art steel mills, procurement of global scale capacities, regular modernization and advancement of old plants is possible. On the global steel map, India has a central position.
The Steel Industry of India is majorly iron-based through the blast furnace or the direct reduced iron route. In India the steel industry is highly consolidated. It holds about 50% of the raw steel capacity which is resident with integrated producers of steel. There is wide scope for rise which is offered by the advancing railways and automobile sectors.