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Steel if we can

It became apparent in the ninth international conference on steel and steel making raw materials that India is marching and path breaking ahead to become the world leaders. India is to reach the global average of 220 kilo per capita. With the change in government there is now a new found confidence in the country. Earlier China ruled the roost but soon India is to replace China after facing the worst downturns in the history, and so it is natural to focus on their problems rather than focusing n deliberating upon bigger picture like structural reforms, raw materials, land availability, infrastructure projects, construction, labor reforms, forests and environmental clearances, freedom from the termite and parasitic regulations causing bottlenecks, need of transparency and so on.

The manufacturing contributes to a mere 15% to the nations GDP, and the age old perception of doing business in India is not easy and inability to compete in the international markets has been changed drastically in just one go by the prime minister of India. India’s prospects as a winning horse is alive and kicking due to very strong human resource, enterprising entrepreneurs and a very robust market transforming India from feather weight to a heavy weight. Manufacturing has only 20 million jobs while the steel sector has created 70 million jobs!!!! And under the new policy the manufacturing aims to contribute 25% of the India’s GDP, and if this is met than definitely India’s capacity will clock 250 million tons from the current 150 million tons.

 To add to it the Indian steel industry is just 100 years old. Now in these modern times steel is a very vital product with 5 lakhs of employees and clocking 60 billion dollars in 2011. The consumption per capita is merely 60 kgs in 2013 as against world’s average of 235 kgs and this only suggests the tremendous scope of growth. India is a very rich source of Hematite and magnetite are the most important ores, the volatility of the cost of raw materials will be easily taken care of by the raging demand by the strong middle class sector.

 In next 15 years domestically the demand will be close to 300 million tones, and the next budget is going to bring around the much needed reforms this industry desperately needs as a breather. Its effects can be felt that at 8.5% which is India’s growth pace has been the fastest among the steel producing countries. On the other hand all the major steel producing nations are registering a decline in production and India is performing much better as compared to the flat performance by other peers.