The steel industry, which accounts for more than 2 percent of India's GDP, has no chance of reaching its 2012 target of increasing steel production to 300 million tonnes by 2025. This was announced today by the National Council of Applied Economic Research (NCAER) of India.
India is today the third largest steel producer in the world with an annual production of 91.46 million tonnes in 2014. Last year, the production of steel here was increased by only 4.3 percent.
The report says that the Indian metallurgy experienced its "golden years" in 2003-2007, but over the past three years, it has increasingly slipped into a crisis. Steelworkers' profits fell 46 percent between fiscal 2011 and 2014, according to NCAER, with the largest losses being seen in medium and small companies.
India's metallurgical sector is seeing growing debts and shrinking jobs, and launching new projects like Efe Steel in Odisha is the exception rather than the rule.
Issues of exploration for new mineral deposits, low availability of skilled labor, high cost and poor quality of logistics facilities and insufficient progress in achieving environmental standards are acute, analysts said.
The Indian steel industry and politicians "need to set more realistic targets," NCAER said.
NCAER: Indian metallurgy has no chance of reaching 300 million tonnes of annual capacity
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Azovpromstal® 6 October 2015 г. 17:14 |
