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aarush2410 · 3 years
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Analysis of Indian Steel Industry & forecasting it’s Future (Demo)
Authors:
Aarush Kumar 1, Harshita Verma 2
B.Tech CSE Student, Galgotias University, Greater Noida, Uttar Pradesh, India.
B.Tech Mechanical Student, GLA University, Mathura, Uttar Pradesh, India.
Abstract
Indian Steel Development Association (ISDA) was formed in 1989 with the explicit objective of diversifying and expanding the domestic market of stainless steel. At that time, more than 90% of stainless used in the country was kitchenware but over the last two decades, stainless steel has undergone tremendous changes in perception and its increasingly growing end use application in areas such as architecture building & construction, automotive transport, process and engineering. The world production of stainless steel in 2012 is estimated at 35.4 million tonne. Asia has strongly emerged as both the world’s largest stainless steel producer and user. Among countries, China dominates the world production of stainless steel accounting for almost 45% share. However, India has outpaced global growth rates consistently over last 10 years with its stainless steel melt production in 2012 reaching almost 3 million tonnes to propel the country as 4 th largest producer after China, Europe and Japan. The potential growth of stainless steel in India is enormous, considering the fact that the per capita consumption at 1.9kg is still much lower than world average of almost 4.85kg. The per capita consumption of stainless steel has strong co-relation with per capita GDP and India is expected to more than double its per capita income over next 10 years. In addition increased urbanization, high demographic dividends and government’s manufacturing policy seeking to enhance the share of manufacturing in GDP to 25% within a decade augurs well for the future growth of the stainless steel in India. This research focuses on the growth story of Indian Stainless Steel industry and its market sector world and further explores on the strategy to increase the consumption domestically considering the fact that world is going through recession cycles resulting in excessive capacity especially China posing a major challenge to Indian Stainless industry.
1. Introduction
It was 100 years ago that stainless steels was first discovered, patented and produced. Over last few decades stainless steel has emerged as the fastest growing metallic material and in recent years its growth rate has even surpassed plastics as shown in Fig. 1. In sustainability, stainless steel is unmatched compared to other materials and can play an important role in sustainable development of Indian infrastructure. Such growth has only been possible due to inherent qualities of stainless steel such as its resistance against corrosion, high strength to weight ratio and its elegant appearance. Taking into account the recyclability, reuse, long life, low maintenance and product safety, the minimal emissions from the production and use of stainless steels, when compared to any other alternative material stainless steel is a preferred choice. Also continuous development in process technology and evolution of new grades of stainless for appropriate applications along with improvement in the people’s living standard propelled this impressive growth.
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2. Global Stainless Steel Scenario & Share of India
The world Crude Stainless Steel production in 2012 [1] is estimated at 35.4 million tons. The world production has grown at a CAGR of 5.2% pa over the last 10 years. Asia has strongly emerged as both the world’s largest stainless steel producer and user. Although China dominates the production of stainless steel accounting for almost 45% share of world production, India has been a part of this impressive growth with its production reaching 3 million tons in 2012 making it the 4 th largest producer after China, Europe and Japan. India has outpaced the global growth rates consistently over last several years. The average growth in India has recorded a CAGR of almost 11.5 % over the last 10 years which is more than a double the world average growth during the period. The past world production of stainless steel and share of India is exhibited in the Fig. 2
The impact of global melt down on stainless steel consumption in the country has also been felt to some extent. While globally the impact of economic meltdown had been very severe, Indian economy by and large did not face harsh consequences of the global impact. Indian economy is mostly dependant on the overall strength of domestic demand and domestic nature of financing of investment with exposure of exports to less than 20% of GDP. This helped it to tide over the year 2008-09 with lesser impact.
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2.1 Production Status of Stainless Steel in India
At present, there are about 26 producers of stainless steel in India with EAF/IF melting and AOD/VOD facilities. These units contribute about 90 percent of the country‘s estimated 2.95 million tons melt production of Stainless Steel in 2012. The overall melt capacity of these producers is estimated at 5.8 million tons. Besides these manufacturers, there are about 20 Induction Furnace (IF) units in the country with estimated capacity of about 0.4 million ton which melt stainless steel scrap and produce pencil ingots without any refining facilities. India has registered a compound annual growth rate (CAGR) of 7.2% pa in production of melt Stainless Steel in the last 7 years [2]. The overall production of Stainless Steel mill products is now estimated at 2.68 million tons. Fig. 3 Indicates the past growth rates in mill product production.
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2.2 Consumption Status Of Stainless Steel In India
The major end using segments that impact the growth of Stainless steel significantly includes construction, consumer durables, transportation, Engineering goods and process machinery. The current and past macro level indicators of these end use sectors are tabulated below in Table 1. Most of the sectors have performed below par over the last 2 years thus affecting the overall growth of stainless steel which normally grows much higher than the sectoral growth due to higher multiplier. 
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2.2.1 Consumption By End Use Sector – A Stainless Steel Grade Indicator
The main Stainless Steel consuming segments can be classified into 6 to 7 broad categories e.g.Metal products, Process and Engineering industries products; Electro mechanical and electronics;Construction, Transportation and others including medical, blades, coins etc. Out of these Metal products, Process Industries and Engineering goods etc are relatively mature applications areas whereas areas like construction and automobile are still evolving in the country and have great future potential for growth.
The automotive, railway and transport (ART) sector is now emerging as the fastest consumption segment of Stainless steel in the country. This segment has grown the fastest 32.39% over the last 8 years propelled by large requirements from railway wagon, coaches and automotive exhausts. The Indian automobile industry has grown rapidly in the past with India emerging as a major hub for small cars. All major international players are having their presence in India. Auto exhausts has been the major consumption segment for Stainless steel in this sector followed by disk brakes,cylinder head gaskets and exhaust manifold gaskets.
One of the new emerging segments for stainless steel consumption is the architecture, building and construction (ABC) sector. The ABC sector is mostly driven by growth in Indian real estate sector consisting of residential real estate, commercial real estate, retail space, entertainment space,hospitality projects and SEZs. All high quality construction projects like retail outlets, shopping malls, multiplexes, Airports, Rail Metros, IT parks, Commercial Complexes, Hotels, Fast food restaurants, High Quality Residential accommodations, Hi tech town ships and showrooms etc in the country today are finding big outlet for stainless steel in different ways and product forms such as Railings, Roofings, Barriers, signages, claddings and building facades.
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3. Challenges
While the country‘s future growth prospects appear to be quite bright there are certain key issues which are hindering its realisation of true potential. Some of the main issues confronting the industry are non availability of nickel in the country and its high price volatility, growing raw material prices, lack of indigenous melting scrap, increasing competition and shrinking margins in India, Cheap imports from China etc are acting as threat to growth of Indian industry. Also the current capacity utilization of both flat and long product producers is quite low at present primarily due to large domestic capacity creation leading to surplus situation for coming few years. A large section of the market in India is price sensitive and the lack of awareness on life cycle costing results in resistance to use Stainless Steel due to high initial cost.
4. Conclusion
From being a very insignificant player in the world market about a decade ago to become world fourth largest producer the Indian market has demonstrated a steady growth in the past years. Maintaining this positive trend will require a lot of marketing and development activities. The efforts should be made to ensure that the use of Stainless Steel in infrastructure should be made mandatory by planning commission and specified in the standards. There is a need to create awareness among designers, specification writers about the benefits of stainless steel to reduce the level of ignorance about the material and thus, create new application areas using the life cycle cost benefits of specifying material. In the pursuit of the objective of increasing and diversifying end use of stainless steel in the country a collective effort by Indian Stainless Steel Development Association, its member companies, and downstream facilities will be helpful to realize the true potential of growth of stainless steel in the country.
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aarush2410 · 3 years
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Democracy vs Dictatorship
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Introduction Democracy is a type of government in which eligible citizens have the right to elect representative to form a government body. It involves citizens directly by giving them voice in legislation. Dictatorship on the other hand is the form of government where all the power is placed in the hands of one person that is the dictator. Democracy and dictatorship have emerged as the two major forms of government across the world since the beginning of 19th and 20th centuries. What is Democratic Form of Government? Democracy is the government elected by majority of the people. It generates the citizens’ interest in the country’s politics by giving them the right to elect the members of the government. It is important in democratic system that the citizens of the country participate and are aware of the social issues and their right to vote. There should be a sense of responsibility in people. The elections should be monitored impartially to ensure system integrity. Characteristics of Democracy Some characteristics of democracy are legal equality, rule of law and political freedom. Democracy runs with the principle of majority rule. Under democracy all eligible citizens have equal access to legislative processes and are equal before law. Vote by every eligible citizen is valuable and has equal weight. The rights and liberties of the citizens are protected by the constitution. Democracy protects human rights by co-operation and coordination. It offers diversity to represent all the communities. Equality lies at the heart of democracy. What is Dictatorship Form of Government? In dictatorship the absolute power is with the dictator. Dictator is the political leader who holds extraordinary power and exercises his power for self interest. In dictatorship, the ruler is the one who acts for the whole Nation. Characteristics of Dictatorship Dictatorship is characterized by some chief features such as civil liberties, suspension of elections, rule by decree, proclamation of state of emergency and repression of political opponents without acting in accord to the rule of law. The most common feature attributed to dictators is to take advantage of their position, usually by restraining the freedom of speech of the people citizens. It is done in order to maintain social and political supremacy. People have no right to voice their thoughts on the way they are governed. There are no elections held and people have no right to choose their leaders. In dictatorship, the law making body is a single person that is the dictator. So, the law enforcement may become brutal at times. In such type of government, there is little regard for the rights of people. Conclusion In democratic form of government people enjoy great deal of liberty. The power is with masses. They can choose the government and they can change the government. Every eligible citizen has equal rights and freedom of self-expression. In dictatorship, there is the rule of a dictator. People have no right to elect their leaders and have to follow the laws and rules of the dictator. Thus, democracy is the best form of government that leads to the development of people and society as the rights and liberties of the citizens are highly respected.
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aarush2410 · 3 years
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Analysis of India’s Union Budget 2019
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INTRODUCTION
As per Article 112 of the Indian Constitution, the Union Budget of a year, likewise alluded to as the yearly fiscal report, is an announcement of the evaluated receipts and consumption of the administration for that specific year.
HISTORY OF UNION BUDGET
After the nation’s freedom, R K Shanmukham Chetty was the main account pastor of India to exhibit Union Budget. The Budget was displayed on November 26, 1947, for the time up to March 31, 1948.In 1970, Indira Gandhi turned into the principal lady account clergyman of India to show a Budget in Parliament. Yashwant Sinha in 2001 broke the pilgrim routine with regards to declaring the Union Budget at 5 at night by introducing the Atal Bihari Vajpayee-drove NDA government’s Budget at 11 am. The previous leader of India, Morarji Desai, who exhibited 10 Union Budgets, holds the record of introducing the most number of Union Budgets ever of India.
Highlights of  Union Budget
1.PAN and Aadhaar will wind up compatible. You can utilize your Aadhaar number to document your I-T returns soon.
2.₹5 lakh least cutoff reported for citizens. In perspective on rising salary levels, those in the ₹2-5 crore and ₹5 crore-and-above sections will see an expansion in successful duty rate by 3% and 7%, separately.
3.GST rate on electric vehicles proposed to be brought down to 5%. Extra personal assessment conclusion of ₹1.5 lakh on enthusiasm on credits taken to buy electric vehicles.
4.An additional finding of ₹1.5 lakh on advances up to March 31, 2020, for purchasing reasonable houses, giving ₹ 7 lakh advantage to home purchasers.
5.Proposal to give Aadhaar cards to NRIs with Indian international IDs, after their entry in India, with no holding up period.
6.₹20 coin coming up.
7.Excise obligation on fuel climbed by ₹1.
8. To determine the heavenly attendant duty issue, new businesses won’t be liable to any examination as for valuation. Assets raised by new businesses won’t require any investigation by the I-T division.
9.TDS of 2% on money withdrawals surpassing ₹1 crore in a year from financial balances, to dishearten business installments in real money.
10.Period of exception for capital increases emerging from the closeout of the house for interest in new companies to be reached out to March 31, 2021.
11.₹70,000 crore in recapitalization for open segment banks.
12.₹1.05 lakh crore disinvestment focus for the year.
13.TV channel to be propelled for elevating new companies and to help to matchmake for assets.
14. The new national instructive arrangement would like to change Indian training into truly outstanding on the planet, with attention on acquiring remote understudies.
15.₹50 lakh crores proposed for Railway foundation.
16. By 2022, the 75th year of Independence, each and every provincial family, aside from the individuals who are reluctant to make the association, will have power and clean cooking office.
17.Stress on zero-spending cultivating, which is a type of planting as a self-supportable practice, with negligible outer mediation.
18. The annuity advantage will be stretched out to 3 crore retail brokers under PM Karam Yogi Maan Dhan Scheme. It requires just Aadhaar numbers and ledgers.
19.₹1 crore was worth of credits proposed to MSMEs.
20.Investment by FIIs and FDIs paying off debtors protections in foundation obligation assets to be permitted. Least open shareholding in recorded organizations can be expanded from 25% to 35%.
21. Worldwide Investors Meet to occur in India.
IMPORTANCE OF UNION BUDGET
The general target of the Union Budget is to achieve a fast and adjusted monetary development of our nation combined with social equity and uniformity. The following are the key destinations that feature the significance of the Union Budget in India. It is important to utilize the accessible assets to the greatest advantage of the nation. Dispensing assets ideally accomplish benefit augmentation for the legislature in order to cultivate open welfare.
CONCLUSION
The Union Budget helps in controlling the financial vacillations also. It guarantees the appropriate treatment of swelling and collapse, in this manner achieving financial dependability. During expansion, surplus spending strategies are actualized, while shortfall spending approaches are concocted during flattening. This guides in keeping up a value solidness in the economy.The Union Budget likewise manages the potential changes in the immediate and backhanded charges of the nation. It realizes changes to annual duty rates and assessment sections.
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aarush2410 · 3 years
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Start-Up India Stand-Up India
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Introduction: India is a country of many great legends who were famous all over the world because of their works, sharp mind and high skill. However, our country is still on the developing track because of the lack of some solid support and ways to work in right direction. Youths in India are very talented, highly skilled and full of innovative ideas. This scheme is a big help to them to go in right direction using their new and innovative ideas. What is Startup India Standup India Campaign: A new campaign named as Startup India, Standup India was announced by the Prime Minister Narendra Modi during his speech on Independence Day 2015. This is an effective scheme launched on 16th of January 2016 by the Modi government to help youths of the country. This is an initiative by the Indian PM to give opportunities to the youths to become industrialists and entrepreneurs which need the establishment of a startup network. Startups means youths of the country will be supported through finance from banks to strengthen those startups better so that they can create more employment in India. This programme is a big start to enable startups through financial support so that they can use their innovative ideas in right direction. PM has also requested to all the banks to support at least one dalit and one woman entrepreneur. This scheme will motivate and promote new comers towards business and grow their career and economy of the country. Action Plan of Startup India Standup India Scheme: A complete action plan of this scheme was launched on 16th January 2016. This scheme will boost entrepreneurship in the country at grassroots level ensuring youth benefits from the lowest strata of society. Youths have fresh mind, new ways, and new thinking so they are better to support as startups. Various IITs, NITs, central universities and IIMs of India were connected through the live connectivity during the successful launch of campaign. The main aim of this scheme is to promote bank financing as well as offer incentives for start-up ventures to boost the entrepreneurship and new job creation techniques among them. Conclusion: This initiative is the necessity to lead India in right direction. The most important point about this campaign is that it involves youths of the country as start-ups as they have fresh mind, innovative ideas, required strength, energy, skill, and new thinking to lead business. Youths are the energetic and highly skilled section of the society so they are better target for this campaign.
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aarush2410 · 3 years
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Digital India
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Digital India is a campaign launched by the Government of India on 1st of July, 2015 in order to transform India into a complete digital country. It is an initiative planned to digitally empower Indian society by integrating the government departments and leading companies (national or international level). The main purpose of digitizing this country is to make available all the government services at easy reach to the citizens of India. There are three key vision areas of this program which are: 1. Digital infrastructure all through the country is like a utility to the Indian people as it will make available high speed internet delivering all the government services with ease and fast. It will provide lifelong, unique, online and authenticable digital identity to the citizens. It will make easy access to any online services like handling bank account, financial management, safe and secure cyber-space, education, distance learning, etc. 2. High demand of good governance and online services will make available all the services in real time through digitization. Digitally transformed services will also promote people for doing online business by making financial transactions easy, electronic and cashless. 3. Digital empowerment of Indian people will really make possible of digital literacy through universally accessible digital resources. It will enable people to submit required documents or certificates online and not physically in the schools, colleges, offices or any organization. 4. Digital India programme has been implemented by the government of India to ensure following aims of this initiative: a. To ensure the broadband highways. b. To ensure the universal access to mobile phones. c. To facilitate people with high speed internet. d. To bring e-Governance by reforming government through digitization. e. To bring e-Kranti through electronic delivery of services. f.  To make available online information for all. g. To ensure more IT jobs.
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aarush2410 · 3 years
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Make In India
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Make in India campaign was launched by the Prime Minister of India Narendra Modi on 25th of September 2014. It is an initiative to make a call to top business investors around the world to invest in India.It is a big opportunity to all investors to set up their business in any field as like manufacturing, textile, chemicals, tourism, IT, pharmaceuticals, etc. in the country.This attractive plan has resourceful proposals for the foreign companies to set up manufacturing powerhouses in India.
Make in India campaign launched by the Indian Government focuses on building the effective physical infrastructure as well as improving the market of digital network in the country to make it a global hub for business(ranging from satellites to submarines, cars to software, paper to power, etc) .The symbol of initiative is a giant lion having many wheels(indicates the peaceful progress and way to vibrant future). A giant walking lion having many wheels indicates the courage, strength, tenacity and wisdom. The page of Make in India on facebook has crossed more than 120k likes and its followers on twitter are more than 13k within few months of launching date.
This national program is designed to transform the country into  a global business hub as it contains attractive proposals for top local and foreign companies. This campaign focuses on creating number of valuable and honoured jobs as well as skill enhancement in almost  25 sectors for improving the status of youths of the country. The sectors involved are automobiles, chemicals, IT, pharmaceuticals, defence manufacturing, etc.The successful implementation of this plan will help in the 100 smart cities projects and affordable housing in India. 
The main objective is to ensure solid growth and valuable employment creation in the country with the help of top investors.It will benefit both parties, the investors and our country. The government of India has created a dedicated help team and an online portal (makeinindia.com) for the easy and effective communication of investors. A dedicated cell is committed to answer all queries from business entities anytime.
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