WHY THE INDUSTRY?
The reason for focusing on this industry is that, Steel industry has become a major production and consumption market, with tremendous potential for growth after the reduction of the export tariffs from 15% to 5%. There has been a consistent rise in the prices and the demand expectations are growing rapidly for the coming years due to planned investment in infrastructure development, increased urbanization and growth in key steel sectors i.e. automobile, construction and capital goods. As per Investment Commission of India more than 30 billion USD are in the pipeline for investment over the next five years. The level of per capita consumption of steel is treated as one of the important indicators of socio-economic development and living standard of the people in any country.
OBJECTIVES OF THE RESEARCH
* To present the study of the steel industry and its production, consumption and growth, focusing on the post globalisation. * To study and examine the export potential of the steel industry * To discuss the total investment in the steel and its user industries.
The factors responsible for driving the Steel industry are availability of raw materials, price of the labour, interest rates as it is a capital intensive industry, foreign direct investment, electricity consumed, technological advancement, export import tariffs, etc.
HOW THE RESEARCH WILL BENEFIT THE INDUSTRY
The research will help benefit the industry by
* Cutting down the various costs
* Improving the quality of the products
* Increasing the total capital utilization of the industry * Understanding the forces of demand and supply in the industry. * Increase in labour productivity
* Growth of the foreign direct investment in the sector.