TMT bars may seem like unassuming bundles of twisted steel. However, they play a far more pivotal role in India’s economic growth than anyone might imagine. They are like the backbone holding up the nation’s infrastructure, industries and overall prosperity. In this blog, you will learn the multifaceted impact of TMT bars on India’s economic trajectory.
Being one of the fastest-growing economies in the world, India has not only withstood the recent crisis but also recovered fast. It has also emerged with brighter prospects amidst global uncertainties. The manufacturing sector has played a vital role in the growth of India in the coming years. One of the obstacles to India’s industrial growth has been the lack of world-class infrastructure. This has been due to the scarcity of good manufacturing units and the companies who are willing to take responsibility. This gap between infrastructure and development has been bridged by TMT bars. These steel bars helped develop India in a way that no other product has.
TMT bars, or Thermo-Mechanically Treated bars, are high-strength reinforcement bars used in construction. They are made with a tough outer core and a soft inner core. This is due to the special manufacturing process, which includes a step called Quenching. It involves rapidly cooling the bars after their formation to enable the soft core and hard exterior. It makes the TMT bars flexible while also making them strong enough to withstand heavy loads and daily stress.
TMT bars in West Bengal have enabled the construction of different types of structures and buildings. They are an important factor in the economic growth of the country. These are some of the ways TMT bars have contributed towards India’s growth:
Infrastructure Development
TMT bars form the foundation of infrastructure projects. From towering high-rise buildings and sprawling highways to main bridges and irrigation canals, TMT bars have contributed to all kinds of developmental projects. Their robust strength and resistance towards corrosion make them ideal for construction. It ensures structural integrity and longevity of the structure. As India strives to modernize its infrastructure, the demand for TMT bars continues to grow. This drives growth in the steel industry and creates huge employment opportunities.
Boosting Industries
The usage of TMT bars goes beyond construction. They are crucial for diverse industries like automobiles, railways, energy, and manufacturing. Their high tensile strength and weldability makes them essential for machinery, vehicles and various industrial applications. This widespread use of the bars across different sectors stimulates the overall economy. This fosters innovation and technological advancements.
Rural Development
TMT bars play a vital role in the rural development of the country. They enable irrigation projects, storage facilities, and rural electrification. They are affordable and durable, which makes them accessible to rural communities. This promotes agricultural productivity and enhances living standards. It unlocks the economic potential in remote areas.
Job Creation
TMT bars are the main products that fuel the demand for steel industries. This generates numerous employment opportunities directly and indirectly. Activities like mining and extraction create many job opportunities, especially for those in rural areas. Manufacturing, transportation, construction and other sectors benefit from the flourishing TMT bar market. This contributes to the alleviation of poverty and economic equality.
Attracting Investments
The growing and efficient TMT bar industry signals the nation’s commitment to infrastructure development and industrial growth. This attracts foreign investment and fosters technological collaborations. It also facilitates knowledge transfer and propels economic progress further. Currently, the TMT bars industry in India is worth between Rs.1,30,000 crores and Rs.1,40,000 crores. It is predicted to increase as much as Rs.14 lakh crores. The demand for TMT bars is increasing due to many reasons, like:
- Low cost of reinforcement bars
- Increase in construction projects
- Demand for commercial, residential, and infrastructural development
Government and private investors are investing in new infrastructural projects such as railways, roads, residential buildings, and commercial spaces.
Challenges Faced By The TMT Bars Industry
The immense potential of TMT bars remains undeniable, presenting exciting opportunities for sustainable growth and economic empowerment in India. However, the TMT bar industry faces its own set of challenges. Some of these are:
Barriers To Setting Up Modern Steel Plants
One of the major hindrances in setting up steel plants for TMT bar manufacture is the huge investment that is required to do so. The cost can go as high as Rs 7000crores for a 1-tonne capacity plant, which poses challenges for many. The reliance on debt financing, coupled with expensive finances in India compared to other countries, inflates product costs, making the final steel product less competitive globally for the leading TMT bar producers.
Cyclical Demand and Monsoon Challenges
The cyclical demand for steel in India, influenced by factors like monsoons that slow down construction, creates financial challenges for steel plants. During low-demand periods, steel plants must operate with minimal income, which leads to financial strain and, in severe cases, closures.
Low Per Capita Consumption
India’s low per capita consumption of steel, at 86.7 kgs compared to the world average of 233 kgs, reflects economic disparities. With low per-capita income and consumption, the incentive to establish large-scale steel plants for economies of scale diminishes. Countries with significantly higher per capita incomes demonstrate a more robust demand for steel.
Low Investment in Technology and Research
India lags in the investment of technology, research and development for the steel industry. This results in dependence on international research and technology, which incurs additional costs. Outdated technologies further contribute to the sector’s unattractiveness.
Slow Adoption of Steel in Construction
India’s adherence to traditional concrete-based construction methods, rather than embracing steel, hinders the steel industry’s growth. In the western countries, steel is extensively used in construction. This is due to its efficiency, strength, and speed. India has yet to leverage steel fully in its construction practices.
Environmental Concerns
The steel industry is among the three biggest producers of carbon dioxide. Consequently, steel manufacturers across the globe are increasingly facing a Decarbonisation Challenge to reduce their carbon footprint from both environmental and economic perspectives.
The Bottom Line
TMT bars are more than just building materials. They are catalysts for change and symbols of progress. Recognizing their significant impact on infrastructure, industries, and overall economic well-being is crucial for fostering sustainable development and propelling India’s rise as a global economic powerhouse. The next time you see a towering building or a bustling bridge, take a moment to appreciate the unsung heroes playing their part in India’s economic growth.
