The Indian market has a huge growth potential in terms of steel consumption.As per the National steel policy, 2005, the growth in steel sectors has been anticipated to reach 100 million tonnes by 2019-20 from a level of 38 million tonnes in 2004-05. To keep up to this target, the Government of India is actively encouraging steel consumption so that the steel industry acts as the locomotive for the overall economic growth of the country. In addition, the country's rich mineral resources and availability of skilled labor makes it an attractive destination for investment. On the other hand, India will be able to derive huge benefits in terms of employment generation, revenues and FDI inflow. In addition, this project will proffer mutual cooperation and amity between India and Korea.
The POSCO-India project will create enormous opportunities for developing ancillary and down-stream industries close to the steel plant. Some of the industries that are likely to come up include construction material manufacturing, by-product treatment, supplement material providing, maintenance shops and downstream industries like steel fabrication, plate & coil processing. There is a vast scope of indirect employment opportunity once the ancillary industries are set up in the area.
A mega integrated steel plant such as POSCO, to be built in Orissa, will lead to significant growth and investment in the country. Owing to the unique nature of the steel industry, which requires large equipment facilities, the project is envisaged keeping in mind the operations of 30 to 50 years. The project will extensively contribute to the development of India's economy and society at large.
Apart from mega projects there is ample avenue for growth of existing sponge iron plants & setting up of smaller ancilliary industries in the state.