Volume : VII, Issue : VI, June - 2017

Economic problem and remedies with reference to iron & steel industries in India

Dr. Ambika Yadav

Abstract :

 The Indian steel industry is one of the most promising industries in the country and across the world. Consumption of steel is an important indicator of economic progress of any country; it increases with an increase in demand for infrastructure, automobiles, transportation, etc. India is blessed with a rich bed of iron ore and steel in mainly eastern parts of the country like Orissa and West Bengal, which contribute to more than 70% of the total steel production. There are a handful of companies which are known for their phenomenal growth in this field, such as Tata Steel, Jindal Steel and Steel Authority of India Ltd. (SAIL). The total production is set to touch 124 million tonnes by the end of 2012 and further reach 275 million tonnes by 2020, maintaining an impressive CAGR of 8%. This sector, is however, dwarfed by numerous obstructions listed below. Major challenges 1.      Capital 2.      Lack of technology 3.      Low productivity 4.      Ineffieceny in public sector units 5.      Low potential utilisation 6.      Heavy demand 7.      Shortage of metallurgical coal 8.      Inferior quality of products Lastly, global economic forces also play a major role in determining the strength of Indian steel industry. An increasing number of international steel giants such as Arcelor–Mittal are entering the Indian shores for expansion. In order to tackle the problem of limited resources, these companies are considering consolidation of forces. One of the biggest steps suggested to the government is banning the export of iron ore, which will ease the problem of shortage of resources.  

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Article: Download PDF   DOI : 10.36106/ijar  

Cite This Article:

Dr. Ambika Yadav, Economic problem and remedies with reference to iron & steel industries in India, INDIAN JOURNAL OF APPLIED RESEARCH : Volume‾7 | Issue‾6 | June‾2017

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