India took its first tentative step towards economic liberalization in 1991. The economy was in the midst of a radical change and the Sponge Iron Manufacturers Association (SIMA) was constituted and started operation from 11 February 1992. It was officially registered under the Society Registration Act XXI of 1860 on 31 January 1994. The overall mood was of great dynamism, qualitative change and greater choices. It was felt, that if the government did not facilitate growth at this time, Indian economy would slip back into the moribund 70’s. Therefore, the fundamental premise behind the formation of the Association was to promote and protect the interest of the Indian Sponge Iron Industry.