India’s Steel Industry – Quo Vadis

Steel is one of the most important man-made materials with a huge diversity in use ranging from a paper clip to an aircraft carrier. Modern infrastructure and buildings are increasingly using steel due to its properties of strength, aesthetics, ease of use and cost. For a developing country like India, steel consumption is also linked to economic growth. Just over a hundred years ago, Fredrick Upcott, Chairman of the Indian Railways, promised to ‘eat every pound of steel rail’ made in India to British specifications. Fast forward to financial year (FY) 17, India is the third largest producer in the world producing 101 Mt of finished steel, only behind Japan and China. The steel sector contributes 2% to India’s Gross Domestic Product (GDP), and employs 5 lakh people directly and 20 lakh people indirectly. This sector is estimated to have an output multiplier effect of 1.4x on GDP and 6.8x on employment in India.