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    Indian Steel Sector Swot Analysis

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    Manish Barnwal
    India has abundant iron ore, coal, and other raw materials required for steelmaking, giving it a lower cost advantage. It also has a large, skilled workforce leading to lower production costs compared to other countries. However, the Indian steel industry faces weaknesses like high energy costs, taxes, capital costs, and dependence on imports. Opportunities for growth include huge infrastructure demand, rapid urbanization, and increasing demand for consumer goods and rural markets. Threats are price wars, slow infrastructure growth, market fluctuations, and potential Chinese exports. The government provides subsidies like interest subsidies to state-owned steel companies.

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    Indian Steel Sector Swot Analysis

    Uploaded by

    Manish Barnwal
    142 views6 pages
    India has abundant iron ore, coal, and other raw materials required for steelmaking, giving it a lower cost advantage. It also has a large, skilled workforce leading to lower production costs compared to other countries. However, the Indian steel industry faces weaknesses like high energy costs, taxes, capital costs, and dependence on imports. Opportunities for growth include huge infrastructure demand, rapid urbanization, and increasing demand for consumer goods and rural markets. Threats are price wars, slow infrastructure growth, market fluctuations, and potential Chinese exports. The government provides subsidies like interest subsidies to state-owned steel companies.

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    STEEL SECTOR INDIA SWOT ANALYSIS PPT

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    India has abundant iron ore, coal, and other raw materials required for steelmaking, giving it a lower cost advantage. It also has a large, skilled workforce leading to lower production costs compared to other countries. However, the Indian steel industry faces weaknesses like high energy costs, taxes, capital costs, and dependence on imports. Opportunities for growth include huge infrastructure demand, rapid urbanization, and increasing demand for consumer goods and rural markets. Threats are price wars, slow infrastructure growth, market fluctuations, and potential Chinese exports. The government provides subsidies like interest subsidies to state-owned steel companies.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    142 views6 pages

    Indian Steel Sector Swot Analysis

    Uploaded by

    Manish Barnwal
    India has abundant iron ore, coal, and other raw materials required for steelmaking, giving it a lower cost advantage. It also has a large, skilled workforce leading to lower production costs compared to other countries. However, the Indian steel industry faces weaknesses like high energy costs, taxes, capital costs, and dependence on imports. Opportunities for growth include huge infrastructure demand, rapid urbanization, and increasing demand for consumer goods and rural markets. Threats are price wars, slow infrastructure growth, market fluctuations, and potential Chinese exports. The government provides subsidies like interest subsidies to state-owned steel companies.

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    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 6

    INDIAN STEEL SECTOR SWOT

    ANALYSIS
    India has rich mineral resources. It has abundance of iron
    ore, coal and many other raw materials required for iron
    and steel making. It has the fourth largest iron ore reserves
    (10.3 billion tonnes) after Russia, Brazil, and Australia.
    Therefore, many raw materials are available at
    comparatively lower costs. It has the third largest pool of
    technical manpower, next to United States and the
    erstwhile USSR, capable of understanding and assimilating
    new technologies. Considering quality of workforce, Indian
    steel industry has low unit labour cost, commensurate with
    skill. This gets reflected in the lower production cost of
    steel in India compared to many advanced countries.
    WEAKNESSES

    The major weaknesses can be summarized as:


    • High cost of energy Higher duties and taxes
    • High cost of capital
    • Quality of coking coal
    • Labor laws
    • Dependence on imports for steel manufacturing
    equipments & technology
    • Slow statutory clearances for development of
    mines.
    OPPORTUNITIES

    The key areas of opportunities can be


    summarized as:
    • Huge Infrastructure demand
    • Rapid urbanization
    • Increasing demand for consumer durables
    • Untapped rural demand
    • Increasing interest of foreign steel producers
    in India.
    THREATS

    • The Indian steel industry has witnessed spurts


    of price wars and heavy trade discounts,
    which has impacted the Indian Steel Industry.
    • Slow growth in infrastructure development
    • Market fluctuations and China’s export
    possibilities
    • Global economic slow down
    GOVT. REGULATIONS IN STEEL SECTOR
    SUBSIDIES
    • Interest Subsidy – Huge amount of interest
    subsidy id provides by Indian govt. to PSUs in
    this sector. In the budget of 2008-09, a total of
    60.72 crores of intersest subsidies were
    provided for the implementation of VRS
    scheme. Since VRS was for govt. companies so
    private sector didn’t got affected by the VRS
    scheme, so in a way this subsidy was justified.

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