Steel mills have been hit by a new financial crunch as demand for the products has soared.
The Indian economy is now the world’s fourth-largest after China, Japan and the US.
Steel output has more than doubled over the past decade and output of raw material used to make the product has more recently increased as demand increased.
India’s economic output has nearly tripled in the last five years.
It has also lost almost 40 per cent of its steel jobs, making it one of the biggest exporters of steel to the US and Europe.
The new demand for steel has resulted in a rise in steel prices.
As the market for steel shrinks, steel mills in India are also finding it difficult to make money as demand has risen and prices have fallen.
But this is also hurting them financially.
Indian steel mills have become profitable at $3 a tonne, but are struggling to make that profit as demand from China, the US, Europe and Japan has risen.
The rise in demand has been particularly noticeable in the steel industry.
According to data released by the Department of Industrial Policy and Promotion (DIPP) last year, demand for Indian steel rose by 16 per cent over the last 12 months.
But the number of mills producing steel for domestic use has fallen to just 13, according to the data.
The number of domestic mills producing Indian steel has fallen by nearly 40 per per cent from 1,400 in the first half of 2017 to just 20 in the second half.
A key factor behind the slowdown in demand for imported steel has been a sharp fall in domestic prices.
Steel mills are also facing competition from cheaper Chinese imports of steel from China and India.
In the last few years, China has become the biggest buyer of Indian steel, making its exports more competitive than those of the other countries that supply steel to India.
India also imports most of its raw materials used to manufacture steel, including steel bars, which have been in the market since the 1960s.
India’s steel milling industry has been hit with a financial crunch after demand for its products has skyrocketed.
Photo: Ramesh Srivastava/Mint India has become a major supplier of steel and the Indian government has taken a number of measures to boost the economy.
In 2017-18, the government increased the annual manufacturing subsidy from Rs 50 lakh to Rs 1.25 lakh for steel mills.
The government also introduced a number or measures that will help boost steel production.
The steel ministry has also increased the subsidy for domestic steel mills from Rs 30 lakh to $1.50 lakh.
It also reduced the price of steel by 15 per cent on the first day of July 2018, the last day of which was July 29.
The price hike came as the government decided to hike the subsidy on steel bars by 30 per cent to Rs 2,500 per tonne.
The subsidy on raw materials and materials for steel production was also increased to Rs 8,000 per ton.
According to the DIPP data, the price increase was also made possible by the recent decision by the government to lower the import duty of steel bars from 28 per cent in the month of July to 20 per cent by the end of the year.
There are a number other measures that the government has implemented to boost steel exports, including subsidising domestic production of steel in large-scale mills, increasing the tariff of imported steel by a maximum of 50 per cent, increasing supply and selling duties on steel products by a minimum of 25 per cent and increasing the import tax from 30 per to 30 per per per millimetre on steel-related products.
In addition, the country is also expected to increase its exports of steel.
This could bring down the steel prices, as domestic mills are looking to sell more steel products.
The Government of India will soon submit a plan to boost domestic steel production, said Anand Kumar, president of the State Steel Manufacturers Association of India.
But, he added, it will be a challenge to create demand for domestic industrial steel.