Iron and steel industry in India began with the foundation of Barakar Iron Works at Kulti in West Bengal. But the real beginning happened with opening of the Tata Iron and Steel Company by Jamshedji Tata in 1907 at Sakchi in modern day Jharkhand. This industry was developed in different stages during different Five Year Plans after independence. During the Second Five Year Plan factories were established at Durgapur (West Bengal) with British collaboration, at Rourkela (Odisha) with Russian collaboration, and at Bhilai (Chhattisgarh) with Russian collaboration. The steel plant at Bokaro (Jharkhand) was established during the Fourth Five Year Plan. The steel plant at Bokaro is the largest steel plant in Asia. The Steel Authority of India Limited (SAIL) was formed in 1973 to ensure qualitative growth in this industry. SAIL is the administrative body to look after all the steel factories under puhlic sector. Three other factories were included under the SAIL which include the factories at Vishakhapatnam (Andhra Pradesh), Salem (Tamil Nadu) and Vijaynagar (Karnataka).

Production: India was the 8th largest producer of wrought iron in the world in 2008. In 2015, it became the third largest producer of wrought iron in the world. India is the largest producer of Direct Reduced Iron (D. R. I.) or sponge iron. India is the third largest consumer of finished steel in the world after China and USA. The steel sector contributes 2% to the GDP and gives employment to more than 6 lakh people.