Question

what is the present position of steel industry in India please tell the profit potential aslo
plz answer this i will give u points surely​

Answer 1

Answer:

Overview

At global level in 2018, the world crude steel production reached 1789 million tonnes (mt) and showed a growth of 4.94% over 2017.

China remained world’s largest crude steel producer in 2018 (928 mt) followed by India (106 mt), Japan (104 mt) and the USA (87 mt).

Per capita finished steel consumption in 2017 is placed at 212 kg for world and 523 kg for China and for India it was 69 kg as published by World Steel Association.

India is the largest producer of sponge iron in the world and the 3rd largest finished steel consumer in the world after China & USA.

The Government has taken various steps to boost the sector including the introduction of National Steel Policy 2017 and allowing 100 per cent Foreign Direct Investment (FDI) in the steel sector under the automatic route.

The growth in the Indian steel sector has been driven by domestic availability of raw materials such as iron ore and cost-effective labour. Consequently, the steel sector has been a major contributor to India’s manufacturing output.

Development of Steel Sector

The economic reforms initiated by the Government since 1991 added new dimensions to industrial growth in general and the steel industry in particular.

Licensing requirement for capacity creation was abolished, except for certain locational restrictions and the steel industry was removed from the list of industries reserved for the public sector.

Automatic approval of foreign equity investment up to 100% was granted. Price and distribution controls were removed with a view to make the steel industry efficient and competitive.

Restrictions on external trade, both in import and export, were removed with drastic reductions in import duty.

General policy measures like reduction in import duty on capital goods, convertibility of rupee on trade account, permission to mobilise resources from overseas financial markets among others, also benefited the Indian steel industry.