Iron and Steel Industry in India
Last Updated : 16 Apr, 2025
The Iron and Steel Industry in India is one of the most important industries and as of January 2019, India has overtaken Japan as being the world's second-largest producer of steel. The crude steel production in India is 106.5 tonnes.
Location of Stee IndustriesIron And Steel Industry in India
The Iron and Steel Industry in India has been boosted because of easily available raw materials such as iron-ore and low-cost labor. The iron and steel Industry of India is one of the major contributors to the country's manufacturing outputs. The aim of the Iron and Steel Industry in India has always been to update the older plants and degradation to higher levels of energy.
Structure of the Iron and Steel Industry in India
There are three categories in which the Iron and Steel Industry in India can be divided:
- Primary Producers
- Secondary Producers
- Other Major Producers
Some of the main steel producers in India include SAIL, TISCO, and RINL, which has a capacity of 50 percent of the country's total steel production other important steel plants include ESSAR, ISPAT, etc.
Location Factors
The important factors which play an important part in the locations of factories are as follows:
| Factors that Affect the Location of Industry |
| Raw Materials |
| Market |
| Transportation |
| Technology |
| Port Location |
| Government Policy |
| Labor |
Growth and Development of Iron and Steel Industry
India's iron and steel industry is more than 4000 years old history. In 350 AD in Delhi near Qutub Minar, a famous iron pillar was created. In 1830, the first attempt of unsuccessful iron and steel was made in Chennai, Tamilnadu. Bombay Iron Works produced pig iron for the first time in 1874.
J.N Tata started the actual progress of the iron and steel industry. In 1918, IISCO ( Indian Iron and Steel company limited) was established in Asansol, West Bengal. Visveswaraya Iron and steel limited was established in 1923 at Bhadravati in Karnataka.
During the second five-year plan (1956 - 1961), the Indian Iron and Steel industry made huge progress. In the collaboration with USSR, Britain, and the German govt, the Indian govt established the Iron and Steel industries in Bhilai, Durgapur, and Rourkela. Bokara iron and steel plant was established in 1964 with the collaboration of Russia. In 1973 Steel Authority of India (SAIL) was established.
Distribution of Iron and Steel Industry in India
In the regions of plentiful raw materials and resources, the iron and steel Industry grew in India. Chota Nagpur Plateau in India is an important place for major India steel-making centers, which are spread across West Bengal, Jharkhand, Orissa, and Chhatisgarh.
Major Iron and Steel Plants in India
Some major Iron and Steel industries are found in India. These are given below -
1. Tata Iron and Steel Company (TISCO)
It is the oldest steel plant in India. It was established in 1907 in Jamshedpur district of Jharkhand. Steel production was started in 1911 in this company. Hematite iron ore is obtained from the Naomundi mines of Jharkhand and Badampahar mines of Mayurbhanj, Odisha for this company. Acid steel for making railway wheels, high-grade steel, bars, bolts, steel casting, axles, and tinplates are produced in this company.
2. Indian Iron and Steel Company (IISCO)
Indian Iron and Steel Company (IISCO) is the merger form of the Indian Iron and Steel Company (1918) and the steel corporation of Bengal (1927). Indian Iron and steel company and the steel corporation of Bengal were merged together in 1952. IISCO has three separate steel plants which are situated at Kulti, Hirapur, and Burnpur in West Bengal. Iron ore is supplied from the Gua mines of Jharkhand and Mayurbhanj of Odisha to the IISCO. Coal is obtained from Ramnagar mines of Jharia district. IISCO obtains water and hydroelectricity from the Damodar River and Damodar valley corporation (DVC)) respectively.
3. Visveswaraya Iron and Steel Limited ( VISL)
Visveswaraya Iron and Steel plant was established in 1923 at Bhadravati in Karnataka, formerly it was known as Mysore Iron and Steel Limited. The central government took over the plant in 1962. Kudremukh and Baba Budan hills of Karnataka supplied high-grade iron ore to the plant. In the production of alloy and special steel, VISL takes a major role.
4. Durgapur Iron and Steel Plant
Durgapur iron and steel plant was set up during the second five-year plan in 1956 with the collaboration of Britain. It is located at Durgapur, Bardhaman district of West Bengal. In 1962, the production was started in this plant. Ingot steel is the main product of this plant. Singhbhum of Jharkhand and kendujhar mines of Odisha supplied iron ore, jharia, and Raniganj supplied coal, balaghat supplied manganese, and water is supplied from the Damodar River.
5. Bhilai Iron and Steel plant
With the collaboration of Russia, the Bhilai Iron and Steel plant was established in 1959 during the second five-year plan in the Durg district of Chattisgarh. Dalli-Rajhara mines supplied iron ore, and Korba Coalfield supplied coal to this plant. Pig iron and crude steel are produced in this plant.
6. Rourkela Iron and Steel plant
During the second five-year plan, Rourkela Iron and Steel plant was established in the collaboration with German govt in 1959 in the Sundargarh district of Odisha. Its main suppliers of raw materials are Mayurbhanj (iron ore), Bokaro and jharia coalfield ( coal), koel river (water), and Hirakud Dam(hydropower). Hot-rolled sheets, cold-rolled sheets, and electrical steel plates are produced here.
Mini Steel Plants
The mini steel plants refer to the small steel manufacturing and pig iron is used as raw materials for this time of plants. They are mostly secondary units that use steel scrap and sponge iron. Mini plants are located at a distance from integrated plants. Mini Steel Plants are mostly located near market areas, for the production of mild steel, and alloy steel. The regulations governing minor steel plants are liberalized a lot at the moment.
Benefits of Mini Steel Plants
Some important benefits of mini steel plants include:
- Lowest Cost for Establishment
- Short gestation period
- More flexibility in operation
- Decentralization of Industrialisation
- Produces low-cost mild steel
- Smaller infrastructural facility
Government Initiatives for the Iron and Steel Industry in India
Some important government initiatives for Iron and Steel Plants in India include:
- Certain guidelines have been approved for the specialisation of steel production which was linked to a production-linked incentive scheme in 2021.
- Mission Purvodaya was launched in the year 2020 for helping India's eastern states for developing faster.
- The Government of India has allocated a budget of Rs. 39.25 crores to the Ministry of Steel in the Union Budget for the year 2020-21.
Significance of the Iron and Steel Industry in India
- The most important significance of the iron and steel industry in India is for the development of the country. It serves as the backbone of the country's physical development.
- The Iron and Steel Industry provides for industrial infrastructure and for regional development. It also provides a greater scope for regional development and also provision of employment.
- The transportation sector is also benefitted from the iron and steel industry. They also aid in the research and development sector's growth.
- Iron and steel are freely imported and exported to/from India.
Related Links
- Factors Affecting the Location of Industries
- Major Industrial Regions of the World
- Major Industrial Regions of India
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