Question

Productivity problems faced by iron and steel industry in india

Answer 1

1. Capital:

Iron and steel industry needs large capital investment which a developing country like India cannot afford.

2. Lack of Technology:

Throughout the 1960s and upto the oil crisis in mid-1970s, Indian steel industry was characterised by a high degree of technological efficiency.

3. Low Productivity:

The per capita labour productivity in India is at 90-100 tonnes which is one of the lowest in the world.

4. Inefficiency of public sector units:

Most of the public sector units are plagued by inefficiency caused by heavy investment on social overheads, poor labour relations, inefficient management, under­utilisation of capacity, etc.

5. Low potential utilisation:

The potential utilisation in iron and steel is very low.