what is the role of liberalisation and foreign direct investment in iron and steel industry?
what is the role of liberalisation and foreign direct investment in iron and steel industry?
The following roles are played by liberalisation and foreign direct investment in the iron and steel industry:
Iron and steel sector opened up for private investment by removing it from the list of industries reserved for the public sector. The market is now more oriented towards buyers rather than sellers.
Redution of import duty on capital goods has led to reduction of capital costs and production costs for steel.
It leads to flow of large-scale investment required for exploration and upgradation of technology.
Addition and enhancement of capacity in the existing plants as well as setting up of new plants.
It leads to integration of Indian manufacturing units with the larger global economy.
It also leads to increase in labour productivity with the adoption of new technology.
Production and export of steel has increased at a higher rate after liberalisation.
The following roles are played by liberalisation and foreign direct investment in the iron and steel industry:
Iron and steel sector opened up for private investment by removing it from the list of industries reserved for the public sector. The market is now more oriented towards buyers rather than sellers.
Redution of import duty on capital goods has led to reduction of capital costs and production costs for steel.
It leads to flow of large-scale investment required for exploration and upgradation of technology.
Addition and enhancement of capacity in the existing plants as well as setting up of new plants.
It leads to integration of Indian manufacturing units with the larger global economy.
It also leads to increase in labour productivity with the adoption of new technology.
Production and export of steel has increased at a higher rate after liberalisation.
