Mains Paper 3: Economy | Effects of liberalization on the economy, changes in industrial policy & their effects on industrial growth
From UPSC perspective, the following things are important:
Prelims level: Anti-dumping duty
Mains level: Result of Government’s efforts implemented recently.
Record amount of steel production
- India has produced 86.7 million tonnes (mt) in the nine months to December from 73.96 mt in the previous year, according to provisional figures from the steel ministry
- India, in fact, has been a net exporter of steel for the past 13 months and has surpassed Japan to be the world’s second largest exporter
- Result of government’s policy: Last year, the government took steps to protect steel makers, construction activity rebounded and China shut down illegal factories.
Last year’s National Steel Policy
- The policy had projected crude steel production capacity will increase to 300 mt per year for 2030-31 from 100-120 mt now came on heels of the government introducing a minimum import duty (MIP) on certain steel products,
- and an anti-dumping duty on products from China and European countries
- The duty on Chinese products was later extended to five years
Need for consolidation
- The top six producers account for half of all steel manufactured in India, the rest of the business remains fragmented, making it ripe for consolidation
- A penalty imposed on suspiciously low-priced imports, to increase their price in the importing country and so protect local industry from unfair competition
- Anti-dumping duties are assessed generally in an amount equal to the difference between the importing country’s FOB price of the goods and (at the time of their importation) the market value of similar goods in the exporting country or other countries