In the era of planned economy, iron and steel, a core and basic sector, received the full attention of the Government. It became a key sector for public investment for the first Five Year Plan itself. The year 1953 saw the first agreement being signed with the Germans to establish a 1 million tonne plant at Rourkela in Orissa. Two more agreements for setting up steel plants, at Bhilai with the erstwhile USSR’s assistance and another at Durgapur with the help of U.K. were signed in 1956. Successive capacity augmentations at Bhilai, Durgapur and Rourkela saw their capacity increase to 2.5, 1.6 and 1.8 million tonnes per annum respectively by the end of the 60s.

    A new plant at Bokaro with a capacity of 2.5 million tonnes per annum went into production in 1973-74. The year 1978 witnessed a major restructuring of these steel-making public sector units giving birth to the public sector giant, SAIL, having a "Navaratna" status today, with an aggregate capacity of over 10 million tonnes. The first shore-based public sector integrated steel plant, viz. The Rashtriya Ispat Nigam Limited of 3 million tonnes per annum capacity went into production in August, 1992.

    During the first two decades of planned economic development, i.e. 1950-60 and 1960-70, the average annual growth rate of steel production exceeded 8 per cent. During 1970-80, this growth rate in steel production came down to 5.7 per cent per annum and gathered up marginally to 6.4 per cent per annum during 1980-90.

    Until the 1990s the iron and steel sector was by and large the exclusive preserve of only the public sector, the sole exception being TISCO. The new economic policy announced in 1991 was no doubt a significant milestone in the evolution of the Indian economy. The process of the economic reforms ushered in substantial liberalisation of the policies and institutions governing trade, industry and finance. With this the complexion of Indian iron and steel industry has undergone a sea change.

    Iron and steel industry became one of the foremost sectors to be opened under the New Economic Policy. Substantial private investments flowed in with the consequent changes heralding a new beginning for the interplay of free market enterprise in this vital sector.

    A glance at the pre-and post-1991 era reveals some interesting and significant structural changes. At the consumer or demand end, the market for steel has been transformed from a seller to a buyer market. Control and regulation have been replaced by competition. Administered prices have been replaced by supply-and demand-determined market prices. In the post-liberalisation era, the structure of the steel industry is significantly and vastly different with the advent of major steel producers in the private sector which have come up with the world class technologies and capacities.

    There has been a clear shift towards the selection of the product mix. During the pre-1991 era, the private sector was mainly confined to the production of long products. The only producer of hot-rolled flat products was SAIL in the public sector. Now there are 5 additional major producers of flat products of steel in the private sector.

    There has been a clear focus on the state-of-the art technology. Presently, India can boast of new technologies like Corex, Thin Slab Casting and Compact Strip Mill Technology, DC Electric Arc Furnaces, Twin Shells AC EAFs etc. in the steel industry. The industry has now to focus on customer satisfaction and outstanding quality of steel products in a competitive environment. Steel producers in the public and private sector have taken upon themselves with determination and commitment to overcome the new and arduous challenges to come up to the Government’s expectations as also the people of our country in the most difficult and trying period for the last couple of years.

    The response of the private sector in particular has been quite encouraging in the post-liberalisation era. Many all-India financial institutions also came forward to support these initiatives and had sanctioned financial assistance to 19 steel projects involving an investment of about Rs. 30,000 crore covering an additional capacity of 13 million tonnes per annum during the post –liberalisation era. Today, India is the tenth largest steel producer in the world. The industry represents over Rs.90,000 crore of capital and directly provides employment to over 0.5 million people.

    The production of finished steel increased from 14.33 million tonnes in 1991-92 to 23.82 million tonnes in 1998-99. The private sector’s contribution in the availability of finished steel has constantly been increasing. From 51.4 per cent in 1991-92 it increased to over 68 per cent in 1998-99. This trend is likely to continue.

    Although India started steel production as early as in 1911, steel exports began only in 1964. Exports in the first five years were mainly due to demand downturn in the domestic iron and steel market. Once domestic demand revived, exports declined. India once again started exporting steel only in 1975, touching a figure of 1 million tonne of pig iron and 1.4 million tonnes of steel export in 1976-77. Thereafter, exports again fell rapidly to meet the challenges arising from increased domestic demand.

    There has been a substantial growth in export of steel during the post- liberation period. It increased from 0.9 million tonnes valued at Rs.700 crore in 1992-93 to 3.4 million tonnes valued at Rs.2580 crore in 1997-98, even overtaking sectors like electronic goods and man-made fabrics. There has been a qualitative change in the export of steel items. Earlier, export consisted mainly of plates, bars and rods and structurals, whereas, now semis, hot-rolled coils, cold-rolled coils and galvanised sheets are also being exported.

    India’s present per capita consumption of crude steel is only 24 kg. which is very low compared to the developed and developing countries- 422 kg. in USA, 417 kg. in Germany 109 kg. in Russia and 87 kg. in China. Our consumption is less than one fifth of the world average (121 kg.).

    The Government has been making all-out efforts to help the domestic steel industry to overcome the problems faced by them. To boost the demand and consumption of steel, an Institution for Steel Development & Growth (INSDAG) was set up involving leading steel producers in the country. The Development Commissioner for Iron & Steel had launched a National Campaign for increasing the demand for steel in non-traditional sectors, particularly in the construction, rural and agro-based industrial sectors. Other areas include reduction in power and railway tariffs, reduction in input costs, strengthening of antidumping mechanism, setting up a steel exporter’s forum and an empowered committee for research and development.