Why did POSCO select India for overseas investments?
The Indian market has a huge growth potential in terms of steel consumption. As of 2004, steel production in India stood at 35 million tons but its goal for the year 2020 is 100 million tons. 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.
