Problems and prospects of iron and steel industry in india
Answers
Answer:
1)capital: iron and steel industry requires large capital investment which developing country like India can't afford.
2) lack of technology :Indian steel industry was characterised by a high degree of technological efficiency. this technology was mainly from abroad. so this leads to lower level of investment in technological development.
3) low productivity :the per labour productivity in India is at 90-100 tonnes which is the one of the lowest in world.
4)inefficiency of public sector units :
inefficiency caused by social overheads, poor labour relations.
5) low potential utilization :
the potential utilization in iron and steel is very low. caused by factors like strikes, lockouts, energy crisis.
6)heavy demand :demand increases at low per capitals. production has to be increased to save precious foreign exchange.
7)shortage of metallurgical coal :
coal for melting are limited. so now coal is replaced by natural gas.
8)inferior quality of products :
lack of technology and capital inputs leads to inferior variety of goods. to compensate this situation we have to improve the technology.
I hope it will help you.