The development of Iron and Steel Industry in India has been consistent. In comparison to China, India had a brilliant beginning. India stands seventh among the world`s largest steel manufacturer by the International Iron and Steel Institute (IISI).
In 2006, India produced around 44 million tones. Government initiatives have increased the growth of the iron and steel industry in India. Some of these measures are, simple tax structure, unrestricted external trade and low import duties. Several social reforms that were introduced by the government helped improve the development process of iron and steel industries in the country.
Recently the government has lately announced that special economic and investment regions will be established in about six states. These in turn would support further processing like production of steel, including some special economic zones where state of the art infrastructures will be made available by the government to develop a better industrial region.
In the years to come by adopting more effective and efficient technologies for manufacturing companies can augment productivity in Iron and Steel Industry in India. This will effect in amalgamating environmental, social, and economic development objectives as well.
In the future, by doing away with various restrictive government regulations in the areas of distribution, pricing and importing of steel, the consumption, to a significant extent will be influenced by domestic availability of steel.
In a liberalized economy consumption is expected to grow according to free market demand and no longer to be restricted by supply constraints.
Demand for steel products has almost continuously been higher than steel production in the past causing India to be a net importer of steel.
