Tolani Institute of Management Studies
Contribution in the development of India’s economic growth:
The Indian steel industry is more than 100 years old now. The first steel ingot wasrolled on 16th February 1912 - a momentous day in the history of industrial India. Steel iscrucial to the development of any modern economy and is considered to be the backbone of the human civilization. The level of per capita consumption of steel is treated as one of theimportant indicators of socio-economic development and living standard of the people in anycountry. It is a product of a large and technologically complex industry having strong forwardand backward linkages in terms of material flow and income generation. All major industrialeconomies are characterized by the existence of a strong steel industry and the growth of many of these economies has been largely shaped by the strength of their steel industries intheir initial stages of development.India is the seventh largest steel producer in the world, employing over half a million people directly with a cumulative capital investment of around Rs. one lakh crore. It is a coresector essential for economic and social development of the country and crucial for itsdefense. The Indian iron and steel industry contributes about Rs.8,000 crore to the nationalexchequer in the form of excise and custom duties, apart from earning foreign exchange of approximately Rs. 3,000 crore through exports. Consumption of finished steel grew by 5.9 %and increased to 24.9 million tones.
teel consumption is likely to increase in the at a rapid pace in future due to large investments planned in infrastructure development, increaseurbanization and growth in key steel sectors i.e. automobile, construction and capital goods.1