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Growth & Problems
of Iron, Steel &
Textile
MADE BY : LOKESH RATHI
PRADEEP
IRON AND STEEL INDUSTRY
 Rapid industrialization of a developing economy can be achieved through
the developed iron & steel industry.
 It is a pre-requisite for the modern industrial development.
Steel plants in India
Growth of Iron & Steel industry during
British Period
 This industry came into prominence from middle of 19th century, when
Barakar Iron Work was set up at Kulti in 1874.
 Another major step was taken with the setting up of Tata Iron & Steel Co.
near Jharkhand in 1906.
 Then in 1923, Bhadravati Mysore Iron & Steel Co. was set up.
 On the eve of independence, the total production capacity of iron steel
industry was 1.3 million tonnes.
Progress of Iron & Steel Industry
during plan period
 The industry was accorded high priority from 1st five year plan itself, when
30 crore were to be spent.
 The target of steel production was put at 17 lakh tonnes by the completion
of the plan and actual production of steel increased by 30.5% .
 In 1995, Government of India decide to set up separate ministry called Iron
and Steel Industry.
 By the time of 4th Five Year Plan, India had four steel plants at Rourkela in
1954, Bhilai in Madhya Pradesh in 1955, Durgapur in West Bengal, and
Bokaro in Bihar.
 Steel Authority of India Ltd. was set up in 1974. It was assigned
responsibility of developing the Iron & Steel industry.
 Industry grew rapidly in initial years of planning. Then the growth slowed
down from 3rd plan onwards.
 Industry attained beter utilization of capacity during 1975-1977 in years of
emergency.
 During 5th and 6th Five Year Plan, utilization declined from 90% to 69% in
1979-1980.
 In the post reform period, industry was benefitted in the field of
technology, because of the push given to liberalization.
 In 8th Five Year Plan, the actual output of steel was 22.7 million tonnes
against the actual consumption of 22.1 million tonnes.
 Rs.14,579 crore were spent on modernization of steel plants during 8th Five
Year Plan
 Total output of steel reached the level of 30.6 million tonnes in 2001-02. At
that time total domestic consumption was only 27.0 million tonnes.
 Private and Foreign investment were solicited during this period.
 About 16,232 crores were spent in industry in 9th Five Year Plan. The net
availability of steel in the country by the end of 10th Five Year Plan had
become 43.7 million tonnes.
 The actual capacity of steel production in the country had been raised to
80 million tonnes in 2011-12.
Problems of Iron & Steel Industry
 Problem of metallurgical coal
 Under utilization of installed capacity
 Problem of prices
 Sickness of mini-steel plants
 Inefficiency of public sector units
COTTON TEXTILE INDUSTRY
 It is one of the oldest and traditional major industries of India.
 It occupies the most important place, among the organized industries of
India.
 Today, there are about 1100 mills in the country, of which 82% are
spinning mills & 18% are composite mills
Growth of Cotton Textile Industry
 The first cotton mill was set up in Kolkata in 1818.
 Most of the mills came to be set up in Mumbai & Ahmedabad in the
second half of 19th century.
 At the time of independence the industry was located largely in Mumbai,
Ahmedabad, Sholapur, Kanpur, Kolkata, Indore, and Coimbatore.
 Textile industry in India is basically based with 65% of cloth production in
the country being accounted for by cotton.
Cotton Textile Industry under Five Year
Plans
 Cotton production has been increasing at a rapid rate during the plan
period.
 Total production of cotton in terms of Million bales, was 4.8 million bales
in 1970-71 which increased to 33.0 million bales in 2010-2011.
 Production of cotton yarn is done predominantly in the organized sector
of the industry. This has been rising regularly over the decades from 55
crore kg in 1950-51 to 458 crore kg in 2004-05
 Production of cloth has also made tremendous progress over the plan
period .
Present Position of Cotton Textile
Industry
 India is ranked third after America and China, among 55 major countries of
world producing textile.
 At present, there are 188 mills operating in public sector, 147 mills are
being run by cooperative sector and approximately 1384 mills are there in
private sector.
 National Textile Corporation controlling 119 mills exports 35% of total
exports and it contributes around 2.5 percent of the gross domestic
product of the country.
 Most of the cotton textiles are located in Maharashtra, Gujrat and Tamil
Nadu.
Problems of Cotton Textile Industry
 Shortage of good quality raw material
 Modernization
 Competition
 Uneconomic units
 Huge taxation on industry
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Growth & problems of iron, steel, & textile industry

  • 1. Growth & Problems of Iron, Steel & Textile MADE BY : LOKESH RATHI PRADEEP
  • 2. IRON AND STEEL INDUSTRY  Rapid industrialization of a developing economy can be achieved through the developed iron & steel industry.  It is a pre-requisite for the modern industrial development.
  • 4. Growth of Iron & Steel industry during British Period  This industry came into prominence from middle of 19th century, when Barakar Iron Work was set up at Kulti in 1874.  Another major step was taken with the setting up of Tata Iron & Steel Co. near Jharkhand in 1906.  Then in 1923, Bhadravati Mysore Iron & Steel Co. was set up.  On the eve of independence, the total production capacity of iron steel industry was 1.3 million tonnes.
  • 5. Progress of Iron & Steel Industry during plan period  The industry was accorded high priority from 1st five year plan itself, when 30 crore were to be spent.  The target of steel production was put at 17 lakh tonnes by the completion of the plan and actual production of steel increased by 30.5% .  In 1995, Government of India decide to set up separate ministry called Iron and Steel Industry.  By the time of 4th Five Year Plan, India had four steel plants at Rourkela in 1954, Bhilai in Madhya Pradesh in 1955, Durgapur in West Bengal, and Bokaro in Bihar.
  • 6.  Steel Authority of India Ltd. was set up in 1974. It was assigned responsibility of developing the Iron & Steel industry.  Industry grew rapidly in initial years of planning. Then the growth slowed down from 3rd plan onwards.  Industry attained beter utilization of capacity during 1975-1977 in years of emergency.  During 5th and 6th Five Year Plan, utilization declined from 90% to 69% in 1979-1980.  In the post reform period, industry was benefitted in the field of technology, because of the push given to liberalization.  In 8th Five Year Plan, the actual output of steel was 22.7 million tonnes against the actual consumption of 22.1 million tonnes.  Rs.14,579 crore were spent on modernization of steel plants during 8th Five Year Plan
  • 7.  Total output of steel reached the level of 30.6 million tonnes in 2001-02. At that time total domestic consumption was only 27.0 million tonnes.  Private and Foreign investment were solicited during this period.  About 16,232 crores were spent in industry in 9th Five Year Plan. The net availability of steel in the country by the end of 10th Five Year Plan had become 43.7 million tonnes.  The actual capacity of steel production in the country had been raised to 80 million tonnes in 2011-12.
  • 8. Problems of Iron & Steel Industry  Problem of metallurgical coal  Under utilization of installed capacity  Problem of prices  Sickness of mini-steel plants  Inefficiency of public sector units
  • 9. COTTON TEXTILE INDUSTRY  It is one of the oldest and traditional major industries of India.  It occupies the most important place, among the organized industries of India.  Today, there are about 1100 mills in the country, of which 82% are spinning mills & 18% are composite mills
  • 10.
  • 11. Growth of Cotton Textile Industry  The first cotton mill was set up in Kolkata in 1818.  Most of the mills came to be set up in Mumbai & Ahmedabad in the second half of 19th century.  At the time of independence the industry was located largely in Mumbai, Ahmedabad, Sholapur, Kanpur, Kolkata, Indore, and Coimbatore.  Textile industry in India is basically based with 65% of cloth production in the country being accounted for by cotton.
  • 12. Cotton Textile Industry under Five Year Plans  Cotton production has been increasing at a rapid rate during the plan period.  Total production of cotton in terms of Million bales, was 4.8 million bales in 1970-71 which increased to 33.0 million bales in 2010-2011.  Production of cotton yarn is done predominantly in the organized sector of the industry. This has been rising regularly over the decades from 55 crore kg in 1950-51 to 458 crore kg in 2004-05  Production of cloth has also made tremendous progress over the plan period .
  • 13. Present Position of Cotton Textile Industry  India is ranked third after America and China, among 55 major countries of world producing textile.  At present, there are 188 mills operating in public sector, 147 mills are being run by cooperative sector and approximately 1384 mills are there in private sector.  National Textile Corporation controlling 119 mills exports 35% of total exports and it contributes around 2.5 percent of the gross domestic product of the country.  Most of the cotton textiles are located in Maharashtra, Gujrat and Tamil Nadu.
  • 14. Problems of Cotton Textile Industry  Shortage of good quality raw material  Modernization  Competition  Uneconomic units  Huge taxation on industry