Indian Industry

In the present era, the steel sector with respect to the Indian market is on the position of upswing. It is not only because of the local demands but global demand is the biggest reason behind it. The huge and speedy economic growth and high demand by several kind of sectors in India such as infrastructure, real estate and automobiles, at home and abroad have been put the better level of the Indian steel industry on the global map. India has got the rank at the seventh position in largest steel manufacturer across the world as per the latest report of Iron and Steel Institute (IISI). The year 1953 can be said as the origin year of the modern steel industry of India. At that time a contract was signed between the germen companies named Fried Krupp und Demag AG and the Indian industry. (Harold c, 1999) At that time in India the work of steel and its construction were done in the state named Rourkela, Orissa. The plant had the overall capacity of 500,000 tons in the one year. But after some time the capacity raised at 1 million tones. Only the plant of Rourkela i.e. Rourkela Steel Plant (RSP) has now the capacity of two million tons, this plant belongs to the SAIL (Steel Authority of India Ltd.) group. In the very earlier time of the steel industry established in India, the USSR and a British consortium also announced about their interest in the India with respect to establish modern steel. This has been resultant in the Bhilai and Durgapur as Soviet-aided building of a steel mill with a capacity of 1 million tones and British-backed construction which also has a million tons capacity respectively. (David s. 2003)

Indian steel industry can be set in the three of the groups such as primary manufacturer, other major manufacturer and the secondary manufacturer. The primary manufacturers and the other major manufactures have incorporated in steel manufacturing facility with the capacity of approximately .5 ton regarding to the plant competence. With respect to Indian steel industry the examples of main manufacturers can be taken as Tata Steel, SAIL, and RINL; at the same time the examples of the other major manufacturer are as ESSAR, ISPAT and JVSL. The secondary sector consists of three major facets:

1) associates provides feedstock for steel producers that is backward linkage from about 120 sponge iron manufacturers that makes use of iron ore as well as non-coking coal.

2) In order to manufacture steels induction furnaces and energy optimizing furnaces that use iron ore, sponge iron and melting scrap and approximately 650 mini blast furnaces.

To make the use for the consumers Forward linkage with about 1,200 re-rollers that roll out semis into finished steel products. (Landes, 2003)

1.4 Structural Weaknesses of Indian Steel Industry

• Even though this nation is modernized its steel making by a huge way, on the