Growth and Challenges of Indian Stainless Steel Industry
Stainless Steel Industry is one of the prominent and dominant metals, which has become the core drivers of industrialization. Steel industry in India is now at the forefront of industrial development and serving the backbone of the economy.
SS Stainless Steel is probably one of the most extensively used metals in the manufacturing industry simply because of its corrosion resistance and other highlighting advantages. Strength, flexibility, durability, ductility is some of the amazing features that steel metal has to offer. In the economic growth of India, steel has contributed immensely that’s slightly more than 2% of the country’s GDP.
The official establishment of the Indian steel industry began with the commencement of Tata Iron & Steel Company (TISCO) in the year 1907, Bihar. After the independence, the Indian steel industry was strengthened with the inception of Steel Authority of India Ltd. (SAIL) in the year 1973.
Today, China is the world’s largest producer of steel with 51.3%, and now, India has become the second-largest producer of steel after overtaking the space from Japan. Over a period of years, the Indian Steel Industry has led to substantial growth. Now, let us step ahead and understand in-depth about the growth and challenges of the Indian steel industry.
GROWTH OPPORTUNITIES OF THE INDIAN STEEL INDUSTRY
From the last 10 to 12 years, there is an extensive growth in the Indian steel industry. In the year 2008, production of steel increased by 75% and thereby, the demand for domestic steel increased by around 80%. Therefore, not only the steel-making capacity but the growth of the Indian steel industry has been truly organic.
Let us check the demand for the steel according to the different sectors.
The physical infrastructure comes under this category, and it fairly contributes 62% of India’s steel demand. In the year 2018, the demand for steel metal in the construction sector gone up to 8.6%. It was predicted that the demand for steel in the construction would likely to rise even in the year 2020, but due to Novel Coronavirus outbreak throughout the world, the economy is now in a crippling state, which will obviously take time to recover and get back on the track again. However, it is also predictable that the demand for steel will likely to go up because India is the second-largest producer of steel in the world after China. The construction sector is the major focus for the government, which drive growth not just in this sector but in the steel industry as well.
When it comes to the contribution of railways in the steel demand, it is 3% and also, growing at a significant pace. In the year 2019, the growth of the steel industry gone up to 7%, which is definitely a significant number. From track electrification to freight corridors, railways will increase the demand and growth of the steel industry in the upcoming years.
The automobile is another largest industry, which has increased demand for steel, i.e. around 9%. As the automobile industry is the fourth largest industry in the world, thus you can imagine how much there’s a rising demand for steel. However, there was a dip in the demand and growth of the automobile sector in the year 2018 and 2019. It was expected to go up in the year 2020, but situations don’t seem to be in control due to COVID-19 outbreak.
Nevertheless, the automotive sector will sustain its growth even if there was a temporary blip and leading to growth in the domestic Indian steel industry as well.
CHALLENGES OF INDIAN STEEL INDUSTRY
Like there are specific growth prospects for the Indian steel industry, there are challenges too. Now, let us look at the challenges encountered that are not letting them grow.
Take a quick look!
1. Low Productivity
Do you know that Japan, Korea and other steel producing nations have per capital-labour productivity of 600 to 700 tonnes? On the contrary, India has only 90 to 100 tonnes for the steel industry, which is actually a low productivity rate. Because of the low productivity rate in the Indian steel industry, the production is less than the expected and one of the major hurdles in the growth of the Indian steel industry.
If proper training to the workforce is provided by the experts, then the labour productivity can be increased up to an expectation.
2. Huge Demand
Nowadays, there is a huge demand for steel metal in different industries because of its amazing chemical properties and features. But when there is a low productivity rate, then quite obviously, the demand can’t be fulfilled. Hence, it is essential to increase labour productivity, which will thereby increase demand.
3. Intensive Capital Requirement
The stainless steel industry requires the heavy investment or capital requirement, and for a developing country like India, it is difficult to invest massively into it. Thus, foreign support comes in! However, retaining foreign investors has become a challenging task too because they all look for early results in short-term investments, and that’s not possible.
Long term investments in the steel industry is required with advanced or cutting-edge technology along with the infrastructure to maintain the pace of the growth of the Indian steel industry.
SS Stainless Steel is becoming extremely popular metal and will continue to grow further. The consumption of steel will increase in the upcoming years because of the people in the modern generation is seeking for a better quality of life these days.
Hence, if you are seeking for Stainless Steel Pipes Manufacturer, then Maven Stainless Steel is an ideal option to consider because ‘Dealers ka Vishwas aur Mazbooti ka bhrosa’ yahi hai Maven ki Pehchan!
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