Performance Divergence and Financial Distress of Selected Steel Companies In India

There is a surge in the Steel industry, due to cycl ical economic factors like the slowdown in economic growth, along with its structural challenges, which refers to excess capacity in its production. At the outset , the contribution of the steel industry to GDP is about 7%, which almost ranked next to China, in world context. But, these rates are an average (3.3%) to the world’s GDP rate. In spite of the growth favor to the Indian Steel sector, there is a boomerang to the steel sector of tax policy. GST was not increas d by any customs duty for finished products, but, raw materials are attracting import duty of 2.5%. Firstly, it is to b e subdued, very soon. A comparative growth of other co e sectors is also the prime influencing factor, for simultaneous grow th of steel sector. Emerging markets are also very less for steel industry. Growth prospects are more favorable to In dian Steel industry; still there is a need of refor m changes with global perspectives. Competition persists always, b etween existing companies. There will be a less pro bability of new emerge of steel company, as its investment is too h igh. This paper highlights the possibilities of ind ustrial sickness, among selected steel industries, in India.