Better Late than Never! This adage is particularly true in respect of India's Steel Import Policy. India is a country which is very rich in Iron Ore Reserves. But still, under the UPA 1 and UPA 2 Governments, Indian Steel Industry reeled under stress from import of Steel from China. With the exception of Tata Steel (TISCO) Jamshedpur, most of the Steel in India is made in Public Sector. Indian Public Sector Units, have mostly been Model Employers. They pay their taxes honestly. They do not bribe anybody. They do not maintain their Factories in such a way that they harm Environment. They do not employ children or organise Sweat Shops. In these circumstances, we should not expect them to compete on par with Chinese Steel Industry. There, Sweat Shops and Exploitation of unfortunate Chinese Labor is common. Here is a BusinessLine NewsReport: Click here to go to BusinessLine to study this report.
During the reign of UPA 1 and UPA 2, and the previous 1999-2004 Vajpayee's NDA Government, India was exporting Iron Ore at throwaway prices to China, and other countries, and used to import Chinese Steel. That resulted in jacking up of iron ore exporters, in the iron ore prices quoted to Indian Public Sector Steel Units. Indian Public Sector Steel Units experienced iron ore shortage, while exporters like Gali Janardan Reddy made billions from legal and illegal iron ore exports.
BALANCE OF TRADE DEFICIT WITH CHINA
India has an extremely adverse Balance of Trade Deficit with China. The deficit is raising year by year. We even forgot that China had occupied 36,000 sq.km. of Indian Territory in Ladakh and NEFA (North Eastern Frontier Agency NEFA, the present Arunachal Pradesh).
STEEL IMPORTS FROM CHINA OUGHT TO HAVE BEEN TOTALLY BANNED
Mr. Chaudhary Birender Singh, India's Steel Minister is reported to have said, on 17th Feb. 2017:
"...We are looking at coming out with a provision in government tenders to mandate using domestically manufactured steel for the grades that are available in India. The contractor can import grades of steel that are not available in the desired quantity in the country. ..."
ybdonkey's personal views which are not intended to be imposed on others
Why the above policyis going to be introduced, only in Government tenders? The policy can also be applied to new Industrial Units in Private Sector. It can be extended to Private Sector Construction and Infrastructure Projects. When something can be made in the country locally, why should Indian Private Sector import Steel?
Scope for Money Laundering
Reckless imports by Private Sector, can also lead to Overinvoicing of imports, Physical quantifies under-importing, facilitating Money Laundering by Private Sector Industrialists.
There is nothing wrong in Protectionism. The Top Industrial countries, Business countries indulge in Protectionism recklessly, latently. But they preach and try to enforce Free Trade on countries like India which face Balance of Trade Deficit, and Balance of Payment disequilibrium.
India has millions of Unemployed Youth, who are to be shown some source of livelihood. If Steel is made in India, employment opportunities, will improve, particularly in Tribal States like Jharkhand, Chattisgadh, Orissa. We know that European countries and American countries have a policy of reducing and restricting Visas to Indian Labor. But then, why nobody questions their Labor Protectionism? If Free Trade in Goods and Services is an ideal to be pursued with Great Zeal, why not there be Free Exchange of Labor? Why Racialism prevails in Europe and America? Let the Labor move freely across the World, without any boundaries!
To continue. सशेष. ఇంకా ఉంది.