What are the major factors driving the Steel exports in India?
Apr-20-2018 Post / what-are-the-major-factors-driving-the-steel-exports-in-india-
What are the major factors driving the Steel exports in India?Steel Industry
Steel production is an integral measure of the development and progress of an economy. With Steel, the country can build great infrastructure for itself while also gaining foreign exchange with exports of surplus production. The steady growth of the Indian Steel industry can be accounted to the availability of the raw-materials, investments, machinery, and cost-effective labour.
Here are some factors that encourage the Export of Steel:
1. Production of Steel: Production supplies are always tied to the demands present. The first Indian Steel plant was established in 1911 with a production capacity of only 0.16 mtpa. Over the years, the country has recognized the significance of the Steel industry and the benefits it offers. India made a record-breaking production of 100 million tonnes in 2017, becoming the third largest producer in the world. India has also consistently exported these finished and semi-finished Steel products to other countries to gain foreign capital.
2. Technological Advancements: The production output and quality is tied to the raw-materials, machinery, and technological innovations used for the Steel manufacturing. In India, the Steel Manufacturing industries have adopted the latest advancements and techniques to ensure a steady Steel output and export supply. Investments in Research and Development, and Training has been instrumental to ensure competitive edge. Automation of project management processes, supply chain, testing, etc have also enabled companies to sarphen the monitoring of the quality and product supply.
3. Government Initiatives: The government of a country plays a crucial role in developing and encouraging the exports of goods and services from a country. The National Steel Policy was revamped and reintroduced in 2017 which aims at achieving a gloabally competitive industry with a crude steel production of 300MT by 2030. This policy wishes to develop India as a net exporter of Steel by 2025-26.
The Ministry of Steel has also facilitated the setup for SRTMI to spearhead the Research and Development activities in the Iron and Steel industry with an intial corpus of 30 million US dollars.
4. Demand and Availability: The growth of the Indian Steel sector is driven by the availability of domestic raw-materials. As a developing economy with the facilities and availability to strengthen and supply Steel products to the world, the demand of Indian Steel is huge. Also, the recent restrictions on China for Steel production due to environmental reasons has led to push the demands further up. The rising demands are also met with the availability of labour, technique, and also the presence of a streamlined export system in our country.
The Steel exports in India are only going to get more powerful in the upcoming years with the vision to increase the export to 6-7% of the produce from the current 1.5%. Agni Steel has been an active and consistent contributor to the Steel export industry and we look forward to exceeding production and export quality products over the years to meet with the demanding expectations.