Production Growth of Indian Steel Industry - Research Paper Example

The researcher hails from India and wants to join the steel business of his father upon completion of his dissertation and his return to their country. His main objective is to investigate the steel market of India and enlighten other countries about India’s budding steel business.In 2008, India landed in the fifth (5th ) place among the leading steel producers in the world. By the year 2020, an outlay amounting to US$176.49 billion will be incorporated in India’s steel industry as relayed by Mr.

Ram Vilas Paswan, India’s Steel Minister. Such investment would result in the steel capability of India to exceed by 290 million tonnes, based on the approximation of US$811 million investment per million tonnes of supplementary faculty. As 2012 approaches, the industry would embark on an investment of US$56.13 billion enabling it to reach US$176.49 billion by 2020. One positive outcome of this investment would be more employment opportunities for about 4 million people in India.Due to the requirements set by construction projects equivalent to about US$1 trillion, the Credit Suisse Group declares that a 16 percent annual growth is possible for India’s steel consumption until 2012.

In the near future, it is anticipated that steel companies in India would meet 19 percent of the total market requirement worldwide, as suggested by a study conducted by ICICI Direct. For this reason, manufacturers of steel items are continually active in their production because they are positive about its huge requirement.By 2012, the capacity of India would reach almost 124 Million Tonnes and above 290 Million Tonnes by the year 2019-2020. With the above capacities, India is predisposed to develop into the world’s 2nd largest steel manufacturer before 2015.