Challenges faced by Steel Industries in India

 In today’s time, no industry can run its business without steel. India has become the second largest steel manufacturer in the world after China. Even though we are the second largest steel manufacturer, we still import steel from some countries and cannot use the full potential of steel manufacturing. The government has made some policies to reduce the import of steel, but there are certain challenges that the Indian steel industry faces. We have explained some factors below in detail.

●     Lack of Capital Investment: When you are in the iron and steel business, a large amount of money must be invested. Truth is hard to take in, but India is still a developing country, and investing such a huge amount in steel factories and hot and cold rolling mills is impossible. Many companies in India have established steel factories with the help of foreign investment, but that causes adverse effects on the product cost.

●     Lack of Technology: When we talk about investment from foreign countries, they also invest in advanced technologies that are extremely expensive and unavailable in India. Our country is still trying to research technologies for various industries, but there is time to come up with a solid solution. Our existing technology is power-consuming and highly polluting to the environment.

●     Coal Shortage: Although India has the largest reserves of iron ore and coal, it is still less for more extensive production of steel manufacturing units. Due to various industries using coal in their production, India imports coal from Indonesia and Australia. The dangerous part is that Australia is hiking the coal prices, which also affects the iron ore prices in India. 

●     Shortage of power: Steel factories need a lot of electricity in their production process. India is a country that still lacks in the production of electricity to some extent. If we compare it to the previous decades, electricity is available in most places today. Still, India has to develop innovative ideas to produce more electricity for steel businesses and other industries. 

●     Low Productivity: When there is a lack of technology, capital investment, and electricity for the steel industry, it has adverse effects not only on their productivity but also on the quality of cold-rolled steel grades used in different industrial sectors. This issue would be terrible in the coming years if not solved early.

We have various challenges to ensure, but we have come a long way from the time of independence till today. India has developed in many sectors, including steel industries, and they will progress more in the coming year with dedication and striving for excellence. JSW Steel is one of the most trusted brands in India and has seen a glorious history for a several decades.