Yuvraj Hedaoo
Ticket No. 499194.
Department: Blast Furnace (Operation)
Designation: Junior Manager.
Introduction:
Indias economic growth is contingent upon the growth of the Indian steel industry.
Consumption of steel is taken to be an indicator of economic development. As the
present per capita consumption in the country is only around 47 kg (2008) against the
world average of 190* kg and that of 400 kg* in developed countries. This study has
been made to estimate the per capita demand for iron and steel in the rural sector of
India and to determine the factors those can contribute to its enhancement.
India was the fifth largest producer of crude steel in the world in 2009, based on rankings
released by World Steel Association. Domestic crude steel production grew at a
compounded annual growth rate (CAGR)of 8.6 per cent during 2004-05 to 2008-09
which is more than the projected growth by National Steel Policy. This growth was driven
by both capacity expansion (from 47.99 million tons in 2004-05 to 66.343 million tons in
2008-09) and improved capacity utilisation. India is expected to become the second
largest producer of steel in the world by 2015-16, provided all requirements for fresh
capacity creation are met. As per official estimates, the Iron and Steel Industry
contributes around 2 per cent of the Gross Domestic Product (GDP) and its weight in the
Index of Industrial Production (IIP) is 6.2 per cent. From a negligible global presence, the
Indian steel industry is now globally acknowledged for its product quality.
* Data taken from Joint Plant Commission (JPC) during the 2008
Opportunities Threats
* Data taken from Joint Plant Commission (JPC) during the 2008.
TRADE POLICY
Exports: It is estimated that the country will achieve an export ratio of around 25
percent of the total production in 2019-20 from 11 percent in 2004-05. This is
comparable with a 30 percent share of exports in global production. The Government
will support all efforts to make available export credit, provide trade information, and
cut transaction costs in general. In view of the slow progress of multi-lateral
negotiations, Government would focus on regional trade agreements to broaden the
export base. Exports of value-added steel and steel products, including indirect
export of steel through project exports, would be encouraged.
Imports: Import duty rates have been brought down progressively in the post-
deregulation period. The Indian steel industry has been able to successfully
withstand the competitive pressures of overseas producers. However, integration
with the global economy requires that the industry should be protected from unfair
trade practices, which become common especially during the periods of downturn.
The Government would, therefore, institute mechanisms for import surveillance, and
monitor export subsidies in other countries.