India’s steel industry today faces challenging market conditions arising out of a global steel glut. In an freewheeling interaction with The Dollar Business, Chaudhary Birender Singh, Union Minister of Steel, GoI, talks at length about the government’s initiatives and plans to overcome global challenges while fueling growth and enhancing competitiveness of Indian steel industry.
TDB: Exports from the iron & steel industry areon the rise. What policy changes have facilitated this?
Chaudhary Birender Singh (CBS): Over the last two years, the government has taken several targeted interventions in the form of trade remedial measures such as imposition of minimum import price (MIP), anti-dumping duty, safeguard duty, etc., and strategic interventions such as an increased focus on the expansion of the MSME sector, raw material security, enhanced R&D activities, reduction in import dependency & cost of production to tackle the global glut in steel industry.
At the same time, 100% FDI through the automatic route has been allowed and large infrastructure projects in the public-private partnership (PPP) mode are being formed. Together, these steps have resulted in improved capacity utilisations, increased cash flows and profit margins for steelmakers, reduced imports and significantly high exports. We also hope that the new National Steel Policy (NSP) will encourage the industry to reach global benchmarks. Similarly, policy clarity and stability in the leasing of mines and forest clearances are also bound to benefit the sector.
TDB: According to Steel Ministry data, exports surged by almost 78% y-o-y during the first 11 months of FY2017, while imports plunged by 39%. Can we expect this trend to continue?
This story is from the May 2017 edition of The Dollar Business.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the May 2017 edition of The Dollar Business.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
'Lowered Incentives Have Hurt Exports'
The decentralised powerloom sector is the backbone of India’s textile business. It not only contributes about 60% to India’s fabrics export, but also provides employment to over seven million people. The Dollar Business caught up with Purushottam K. Vanga, Chairman of Powerloom Development and Export Promotion Council (PDEXCIL), to understand what the Council is doing to boost exports from the sector.
“it's Time to Explore Untapped Markets”
Charan Reddy Arutla (CRA): I have always been passionate about apparel and shopping – usually, I spend a lot of time and money on shopping. In 2011, an enthusiastic young man combined his passion for fashion with business and started Roman Island. Six years later, this Rs.100 crore company is making its presence felt both in the domestic and international markets. CEO and Chairman Charan Reddy Arutla shares the company’s growth, challenges and plans with The Dollar Business.
Fta Will Create A Win-win Situation
Edgar Vasquez, Vice Minister of Foreign Trade of Peru, was in India recently to push for a comprehensive free trade agreement (FTA) covering goods, services and investments between the two countries. The Dollar Business caught up with him to understand the rationale behind the proposed FTA, which is in line with the agreements the Latin American nation already has with 53 countries.
The 'Soap' Opera Has Just Begun
Indian exporters of organic soaps have been making ‘clean’ hits across overseas markets for quite some time now. As a result, exports of this product from the country has risen steadily. So, what really makes this product a popular choice amongst foreign buyers and Indian exporters (who enjoy high average margins)?
GST: Right Intent. Wrong Rules
A catalyst or deterrent for India's exports?
The Sweet Sound Of Profits
Usage of earphones and headphones in India has been increasing at a rapid clip, in tandem with mobile phone and Internet penetration. And that should be music to the ears of importers of the product as production lags demand by a huge margin.The Dollar Business dives deep into the business to understand and analyse the dynamics of this lucrative market.
Protectionism Is On The Rise Globally
Dr. Shashi Tharoor dons many hats with equal élan – a Congress leader, a Member of Parliament representing the Thiruvananthapuram constituency, the Chairman of the Parliamentary Standing Committee on External Affairs, and a much acclaimed and awarded author. In an exclusive interview with The Dollar Business, Dr. Tharoor shares his views on the changing dynamics of global trade.
A Fashionable, ‘Boot'iful Idea
When India’s exports were on a decline over the last couple of years, one product category that did not lose its shine is leather boots. On the contrary, its exports from India surpassed that of traditional leaders like Germany and Netherlands. The Dollar Business analyses what makes this product a bestseller overseas.
What's In Store For Global Trade In 2017?
The year gone by was eventful, both for the world and India. While the much-awaited Goods and Services Tax (GST) was passed by the Indian Parliament, United Kingdom voted to exit the European Union. While Donald Trump took the world by surprise, Indian Prime Minister Narendra Modi's sudden announcement of demonetisation left the whole country in a financial shock. The global commodity market too woke up from a slumber, though there is more recovery that can be made. While these and many other such events shook the world in 2016, their impact on global trade and policy environments will only likely be seen in 2017. Will 2017 be a year of change for the better? The Dollar Business takes a look at key elements and occurrences that could change world trade in 2017.
Demonetisation & Its (Side) Effects
While a large segment of the Indian population supports the post-Diwali demonetisation drive, that its impact on India's economy will be negative in the short term is a given. The Dollar Business analyses how the move could well prove a headwind for India's manufacturing, foreign trade and economic growth.
