1 / 22

A preliminary survey on the development of the Indian steel industry after the economic liberalisation

A preliminary survey on the development of the Indian steel industry after the economic liberalisation. Hajime SATO Institute of Developing Economies. Overview. Crude Steel Production in India in 2004 was 32.6 million tonnes, the ninth largest in the world .

sandra_john
Télécharger la présentation

A preliminary survey on the development of the Indian steel industry after the economic liberalisation

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. A preliminary survey on the development of the Indian steel industry after the economic liberalisation Hajime SATO Institute of Developing Economies

  2. Overview • Crude Steel Production in India in 2004 was 32.6 million tonnes, the ninth largest in the world. • The steel industry in the total manufacturing; • 10% in the value added (fluctuating) • 8% in the employment but decreasing to 6% after 1991

  3. Features of the Indian steel Industry • Abundant supplies of raw materials • Integrated plants located inland • Development designated to public sector up to 1991 • Highly regulated and protected markets till 1991 • Relatively slow technological up gradation

  4. Brief history • Before 1945, iron making developed, steel making weak • After independence, strong state initiatives and controls (IPA) • IDRA (industrial licenses for entry, expansions etc.) • Succeeded in installing integrated plants(Bhilai, Rourkela, Durgapur) in the early 1960s. The three expanded and Bokaro and VSP added in 70s and 80s. But after all, stagnated from the mid-1960s to 1990.

  5. Policy Changes • Industrial and Trade Policy Resolutions in 1991 with regard to the Steel industry • Exempted from industrial license system • Abolition of price controls • Liberalising conditions for FDIs • Liberalisation of imports and exports • Lowering tariff level • In short, steel companies compete more freely in domestic and international markets than before

  6. Changes in Technology • Steel making process • Iron making : Rise of DRI(HBI/sponge iron) production • Steel making: Replacement of OHF with BOF/EAF, Introduction of CC • Rolling: Introduction of flat making capacity(hot strip mill, cold rolling lines) • Labour Productivity: increasing

  7. Structural Changes • Public v. Private: Newentry of private firms • Integrated v. non-integrated: New types of integrated makers, EAF-Rolling makers, Iron makers, Small EIF makers • Dual structure efficient? Integrated and big EAF makers v. Small EAF and EIF makers

  8. Consumption and Trade • Apparent consumption per head extremely low • Relative increase of flat products consumption domestically • Imports stable up to 2003, hot rolled coils decreasing while hot rolled sheets increasing • Exports increasing, not least hot rolled coils • Exporters:The share of SAIL, RINL and TISCO decreasing, new comers exporting.

  9. Changes after the economic liberalisation Steel production and export increased much faster than before This increase attributable to new comers Technology catching up rapidly New type of steel firms appeared Flat products imported and exported Problems faced Raw materials Infrastructure Labour Environment Finance Conclusion

  10. back

  11. back

  12. back

  13. back

  14. back

  15. back

  16. back

  17. back

  18. back

  19. back

  20. back

  21. back

  22. back

More Related