Porter's Analysis of Indian Steel Industry

INTRODUCTION Post independence, steel exertion in India came under the regulatory framework of Government of India, which stipulated that steel industry be close under the public sector. It also stipulated that capacity creation and sweetener would require licensing, and that pricing and distribution of steel would be landing field to govt. control. Nationalization of TISCO, that existed from before independence could not be carried come forth due to popular pressure[3]. Economic reforms were started in 1991 with the new industrial policy- licensing requirement for capacity enhancement was withdrawn, and the industry was opened to reclusive and foreign players. Pricing and distribution controls were removed in 1992. consequence/export restrictions were removed and import duty rates give up been slashed. Policies like reduction in import duties for capital goods, convertibility of the rupee on trade account, permission to mobilize resources from overseas fiscal markets, and tax structure rationalization have helped the industry performance. In the early 1990s, global prices were high and domestic demand image was optimistic, which resulted in addition of new capacities especially by private sector.

The later period of 1990s saw a neutralise in demand for steel on account of time out affecting the automobile sector, tardy progress of infrastructure projects, and an boilersuit drop in investments. The industry also had to face immobile competition on account of a phased reduction in import duties from 100% to 10%. Today, the Indian steel industry is the eighth largest in the world with 31.8 million tones annual occupation (3.3 % of world production). The per capita consumption of iron in India is low at ~ 20 kg[3]. The contribution of the steel sector to the GDP is virtually 1.3%. About 10% of the collection through Central mint comes from the steel industry. It provides direct employment to about 0.4 million people, of which 40% are in the integrated steel-producing units. Of... If you want to get a full essay, order it on our website: Orderessay

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