Steel Industry: Position of India in World
Scenario
High demands of steel by sectors like infrastructure, automobiles, home
and real estate has given a boost to steel industry in India. India is
the world's fifth largest producer of steel which produces 50 MT of
crude steel and 52 MT of finished steel. It is believed that by 2016,
India is going to be the second largest producer of steel and its
production is going to be around 137 MT. Combined with huge production,
the exports of steel has also increased to 6.26 %. During the last 3
years the consumption of steel has also grown by 12.5%. But even then
the per capita consumption of steel is only 35 kilograms compared to 250
kilograms in China.
Achievements of Indian Steel Companies
Due to its rapid progress, many domestic and foreign companies are
ready to invest in the Indian steel market. Arcelor Mittal and Posco
have promised to invest $32 million and the steel industry is likely to
attract an investment of $220 million by 2020. Many of the investments
are directed to expand the present steel capacity or setting new steel
plants. Many big (Tata Steel) and small companies (Bhusan Steel) are
planning to increase their production in the coming few years.
Indian steel companies are also making a mark for themselves in the
world. Tata Steel has acquired Anglo - Dutch Company Corus to become the
world's fifth largest steel maker. Naveen Jindal of Jindal Steel and
Power Ltd has got a contract of $2.1 million for developing one of the
world's largest iron ore deposit, El Matun. Similarly JSW Steel has
acquired Jindal United Steel Corporation, Saw Pipes USA and Jindal
Enterprises LLC at Baytown, Texas, for a staggering $ 940 million.
Going by the above figures and achievements, it is crystal clear that
Indian steel industry has a bright future.
