1.

INTRODUCTION AND RESEARCH DESIGN

1.1.

INTRODUCTION

Steel is crucial to the development of any modern economy and is considered to be the backbone of human civilization. The level of per capita consumption of steel is treated as an important index of the level of socioeconomic development and living standards of the people in any country. It is a product of a large and technologically complex industry having strong forward and backward linkages in terms of material flows and income generation.

All major industrial economies are characterized by the existence of a strong steel industry and the growth of many of these economies has been largely shaped by the strength of their steel industries in their initial stages of development. Steel industry was in the vanguard in the liberalization of the industrial Sector and has made rapid strides since then. The new Greenfield plants represent the latest in technology. Output has increased, the industry has moved up i n the value chain and exports have raised consequent to a greater integration with the global economy.

The new plants have also brought about a greater regional dispersion easing the domestic supply position notably in the western region. At the same time, the domestic steel industry faces new challenges. Some of these relate to the trade barriers in developed markets and certain structural problems of the domestic industry notably due to the high cost of commissioning of new projects. The domestic demand too has not improved to significant levels. The litmus test of the steel industry will be to surmount these difficulties and remain globally competitive.

1.2. STATEMENT OF THE PROBLEM

Exports and Imports play an important role in a countrys economy and it has its effect on a countrys Balance of Payment position. India has been trading a number of AYUSH products to various countries not only to meet its own domestic demand but also to import/export the scarcely available products. The main rationale behind this study is to get an overview of AYUSH products & its future prospects and also the export potential of AYUSH products from India.

1.3. OBJECTIVES OF THE STUDY

The objective of the research project is:

To study about the working of Department of AYUSH in India. To study the export potential of AYUSH products from India. To Study about the export of ayurvedic products from India.

1.4. PERIOD OF THE STUDY

The processing and analysis of data was carried out for four months from Dec 2013 to Mar 2014

1.5. METHODOLOGY

The basic knowledge about the workings of steel products has to be gathered thorough the secondary data available on the internet and the documents available in the institute library. The quantum of information on this subject matter is enormous and updated. The secondary sources such as internet and news articles cover almost all major players.

Research is a common parlance refers to search for knowledge. It comprises defining and redefining problems, suggested suggestions collection, organising data, making detection and determines whether they fit the formulated hypothesis. Research methodology is a way to systematically solve the research problem. Research is thus an original contribution to existing stock of knowledge for its advancement.

In short, the research for knowledge through objective and systematic method of finding solution to the problem is research. Research methodology is a way to systematically solve the research problem. When we talk of research methodology we not only talk about research method but also consider the logic behind the research method we have used in the context of the research.

THE STUDY

This is exploratory study to analyze export of Ayurvedic products from India and to develop the comprehensive understanding of the factor affecting the export and to develop suggestions to overcome it.

THE SAMPLE

The data of last ten years (2002-03 to 2012-13) based on the present AYUSH products export from India to other countries and its growth as per past years data is selected.

1.5.1 SOURCES OF DATA

The system of collecting data for research projects is known as research methodology. The data may be collected for either theoretical or practical research for example management research may be strategically conceptualized along with operational planning methods and change management. Some important factors in research methodology include validity of research data, Ethics and the reliability of measures most of your work is finished by the time you finish the analysis of your data. Formulating of research questions along with sampling weather probable or non probable is followed by measurement that includes surveys and scaling. This is followed by research design, which may be either experimental or quasi-experimental.

The last two stages are data analysis and finally writing the research paper, which is organized carefully into graphs and tables so that only important relevant data is shown. Types of Research Methods

Qualitative Quantitative Mixed Critical and action oriented

Data collection Data collection depends on the research design (quantitative or qualitative design). Tutors India helps in a survey tool validation and also online and face to face data collection process. We help you to conduct surveys [in person Interviews: Formal to informal; structured to unstructured; focus group discussion, observations, self-administered questionnaire, diaries, citizen report cards, Delphi techniques, expert judgment, online surveys, secondary sources such as journals, newspaper articles, annual reports, government sources such as census, budgets, policies, procedures, etc. Quantitative consulting Benefits

The preparation of a successful dissertation involves conducting effective research, analyzing data and results presentation all which require a high level of statistical expertise. We at tutors india provide solution from formulating methodology to the results presentation. You can approach statswork with any or all of the following steps:

Framing your Research Methodology

Study design Sample size calculation and justification Development of questionnaire Statistical techniques Research is undertaken within most professions.

More than a set of skills, it is a way of thinking: examining critically the various aspects of your professional work.

It is a habit of questioning what you do, and a systematic examination of the observed information to find answers with a view to instituting appropriate changes for a more effective professional service. When you say that you are undertaking a research study to find answers to a question, you are implying that the process;

1. Is being undertaken within a framework of a set of philosophies ( approaches); 2. uses procedures, methods and techniques that have been tested for their validity and reliability;

3. Is designed to be unbiased and objective. Philosophies mean approaches e.g. qualitative, quantitative and the academic discipline in which you have been trained. Validity means that correct procedures have been applied to find answers to a question. Reliability refers to the quality of a measurement procedure that provides repeatability and accuracy. Unbiased and objective means that you have taken each step in an unbiased manner and drawn each conclusion to the best of your ability and without introducing your own vested interest. (Bias is a deliberate

attempt to either conceal or highlight something). Adherence to the three criteria mentioned above enables the process to be called research.

1.5.2 TOOLS AND TECHNIQUES

Data Collection

Secondary Source: Those, which have already been collected by someone else and which have already been through, the statistical process and thus are available on internet sites and any other media for that matter. The secondary data will be collected from internet and references from Library.

Data Analysis: The data were analysed through Trend analysis technique using SPSS statistical software for a suitable forecasting model based on export data. Graphs and tables will be used for presentation of the data and findings to make it apparent and understandable

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1.6.

LIMITATIONS OF THE STUDY

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1.7.

CHAPTER SCHEME

The report is divided into five chapters.

1. The first chapter, i.e., is introduction with the concept of the topic, various previously done studies in the related field and objectives of the study, Research Methodology, takes a look how the research was conducted. Mainly it discussed the study and tools. 2. In chapter two deals with Review of Literature, 3. The perspective of the selected industry & explanation of the theoretical objectives is chapter three. 4. In the Chapter fourth, analysis of data. 5. Chapter five deals with conclusion, summary and suggestion.

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2. REVIEW OF LITERATURE
2.1. Export Performance

13

3. PERSPECTIVE OF THE SELECTED INDUSTRY & EXPLANATION OF THE THEORETICAL OBJECTIVES

3.1

INTRODUCTION

Department of Indian Systems of Medicine and Homeopathy (ISH&H) was set up in 1995 to ensure the optimal development and propagation of AYUSH systems of health care. It was renamed as the Department of Ayurveda, Yoga & Naturopathy, Unani, Siddha and Homoeopathy (AYUSH) in November, 2003. The Department continued to make steady progress during the year 2005-2006. Emphasis was laid on implementing the schemes which address the thrust areas identified by the Department like up gradation of educational standards, quality control and standardizations of drugs, improving the availability of raw material, research and development and awareness generation about the efficacy of the systems domestically and internationally.

The involvement of AYUSH in the national health care delivery systems including National Rural Health Mission (NRHM) was given a thrust in keeping with the strategies laid out in National Policy on ISM&H-2002.Standardisation of drugs and quality control continued to receive focused attention. Department of AYUSH issued three Orders to ensure Quality Control of ASU Drugs. Displaying on the label of the container or package of an Ayurveda, Siddha and Unani drug, the true list of all ingredients (official and botanical names) used in the manufacture of the preparation together with the quantity of each of the ingredients incorporated therein has been made mandatory. All the State ASU Drug Licensing Authority have been directed to take action against the defaulting ASU Drug manufacturers for failure to comply with the Good Manufacturing Practices notified under Schedule T of the Drugs and Cosmetics Rules, 1945. Testing for heavy metals, viz., Arsenic, Lead, Mercury and

14

Cadmium in all purely herbal Ayurveda, Siddha and Unani drugs has been made mandatory for export purposes w.e.f. 1st January, 2006.

The Department has been taking serious initiatives for integrating AYUSH with the modern medicine. Mainstreaming of AYUSH is envisaged in the National Rural Health Mission. The Department of AYUSH is implementing a Centrally Sponsored Scheme for promoting Indian Systems of Medicine & Homoeopathy.

The scheme covers a) Establishment of specialized therapy centre with hospitalization facility for Panchkarma/Kshar Sutra therapy of Ayurveda or Regimental therapy of Unani Medicine of Siddha or Yoga & Naturopathy or Homoeopathy; b) Establishment of speciality clinic of ISM&H i.e. system specific outdoor treatment centre; c) Setting up of ISM&H wing in District Allopathic hospitals outdoor as well as indoor facility of one or two systems of ISM&H; and
d) Supply of essential AYUSH drugs to rural & backward area AYUSH

dispensaries.

The Department of Ayurveda, Yoga & Naturopathy, Unani, Siddha and Homoeopathy(AYUSH) is headed by a Secretary to the Government of India. The Secretary is assisted by a Joint Secretary and four Directors/Deputy Secretaries and a number of Advisers (at present three) and Dy. Advisors (at present six) of Ayurveda, Siddha, Unani & Homoeopathy. The total sanctioned staff strength of the Department in Group A, B, C, & D is 268, which include Secretariat and Technical posts. Concerted efforts were made to fill up vacant posts. A post of Joint Secretary in the scale of Rs.18,400-22,400 in lieu of the post of Director in the scale of Rs.22,40024,500 + NPA has been created in the Department of AYUSH with the approval of Union Cabinet.

15

The Department has, over the years, developed a broad institutional framework to carry out the activities in the field of AYUSH. The institutional framework consists of two statutory regulatory bodies, namely, Central Council of Indian Medicine (CCIM) and Central Council of Homoeopathy (CCH), for laying down minimum standards of education, recommending recognition of medical qualifications, registering the practitioners and ethical matters; apex research bodies known as the Central Councils of Research for Ayurveda and Siddha, Unani Medicine, Homoeopathy, Yoga and Naturopathy; apex educational institutes such as National Institutes of Ayurveda, Homoeopathy, Naturopathy, Unani System of Medicine, Yoga and Rashtriya Ayurveda Vidyapeeth; Pharmacopoeial Laboratory for Indian Medicine & Homoeopathy Pharmacopoeial Laboratory; Pharmacopoeial Committees for the different systems of medicine and Ayurveda Hospital, Lodhi Road, New Delhi which has been transferred from Department of Health to Department of AYUSH for its management.

A Public Sector Undertaking, viz., Indian Medicines Pharmaceutical Corporation Ltd. (IMPCL), has been functioning for manufacturing of classical drugs of Ayurveda and Unani systems of medicine. The modernization and expansion of its activities have been approved and infusion of equity has been permitted.A National Medicinal Plants Board is functioning under the Department to coordinate activities relating to conservation, cultivation, marketing, export and drawing policies and strategies for the development of medicinal plants sector. The Medicinal Plants Cell (MPC) working under the Department for implementing the Central Scheme for development and cultivation of Medicinal Plants and developing agro-techniques has now been transferred to the National Medicinal Plants Board.A Drug Control Cell (AYUSH) is working in the Department to deal with the matters pertaining to licensing and regulation of drugs and control of misbranded/adulterated and spurious manufacturing of Ayurvedic, Unani and Siddha Drugs and other matters. The DC Cell also deals with developing Traditional Knowledge Digital Library (TKDL) and matters relating to Intellectual Property Rights (IPR) as also coordination with Government of India Ministries/Departments concerned with IPR and patent claims.

16

Besides, Information, Education & Communication (IEC) Cell and a Facilitation Center have also been functioning in the Department.

The Department realizes the need to develop itself into a dynamic and flexible organization in a rapidly changing and complex environment. The Department also realizes the need for appropriate human resource policy to maintain the motivation and cooperation of its employees to increase their Adopt DOTS if test confirms T.B. efficiency. In order to streamline the working of the autonomous bodies, amendment in the composition and constitution of Governing Bodies and other Committees has been completed. The Scientific Advisory Committees (SACs) continue to ensure that proper technical & scientific inputs are available for undertaking promising, contemporary areas of research keeping in view the strengths of these systems.

AYUSH SYSTEMS

1)

Ayurveda Ayurveda is perhaps as old as our civilization. This "science of Life" (Ayu

+Veda) takes an integrated view of the physical, mental, spiritual and social aspects of human beings, each impinging on the others. Ayurveda was referred to in the Vedas (Rigveda and Atharvaveda) and around 1000B.C. the knowledge of Ayurveda was comprehensively documented in Charak Samhita and Sushrutha Samhita. According to Ayurveda health is considered as a pre-requisite forachieving the goals of life Dharmas, Arth,Kama and Moksha (Salvation) and all objects and living bodies are composed of five basic elements, the Pancha Mahabhootas, namely: Prithvi (earth), Jal (water), Agni (fire), Vayu (air) and Akash (ether).

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The philosophy of Ayurveda is based on the fundamental harmony between the universe and man, a healthy balance between macrocosm and the microcosm. Ayurveda believes in the theory of Tridosha: Vata (ether + air), Pitta (fire) and Kapha (earth + water). These three 'Doshas' are physiological entities in living beings. The mental characters of men are described by Satva, Rajas and Tamas. Ayurveda aims to keep these structural and functional entities in a state of equilibrium which signifies good health (Swastha). Any imbalance due to internal or external factors causes disease and the treatment consists of restoring the equilibrium through vari-ous techniques, procedures, regimen, diet and medicine.

The treatment in the Ayurveda system is holistic and individualized having two components; preventive and curative. The preventive aspect of Ayurveda is called Svasth-Vritt and includes personal hygiene, regular daily and seasonal regimen, appropriate social behaviour and Rasayana Sevana, i.e., use of rejuvenative materials/food and rasayana drugs.The curative treatment consists of three major categories of procedures, Aushadhi (drugs), Anna(diet) and Vihara (exercises and general mode of life). Ayurveda largely uses plants as raw materials for the manufacture of drugs, though materials of animal, marine origin, metals and minerals are also used. Ayurvedic medicines are safe and have little or no known adverse sideeffects. Ayurveda developed into eight distinct specialities, i.e., Kayachikitsa (Internal Medicine), Kaumar Bhritya (Pediatrics), Graha Chikitsa (Psychiatry), Shalakya (Eye and ENT), Shalyatantra (Surgery), Visha Tantra (Toxicology), Rasayana (Geriatrics) and Vajkarna (Science of virility).

During the last 50 years of development in the teaching and training in Ayurveda, twenty two specialties have now been developed. These are Ayurveda Sidhanta (Fundamental Principles of Ayurveda), Ayurveda Samhita, Rachna Sharira (Anatomy), Kriya Sharira (Physiology), Dravya GunaVigyan (Materia Medica and Pharmacology), Ras-Shashtra (Pharmaceuticals using minerals and metals), Bhaishajya Kalpana (Pharmaceuticals), Kaumar Bhritya - Bala Roga (Pediatrics), Prasuti-Tantra evum Stri Roga (Obstetrics and Gynaecology),Swasth-Vritta (Social

18

and Preventive Medicine),Kayachiktisa (Internal Medicine), Rog Nidan avum Vikriti Vigyan (Pathology), Shalya Tantra (Samanya) (Surgery), Salya Tantra-KsharKarma avum Anushastra Karma (KsharsKarma and Para-surgical procedure), Shalakya Tantra-Netra Roga, Shalakya Tantra - Shiro-Nasa-Karna Avum Kantha Roga (ENT), Shalakya Tantra Danta Avum Mukha Roga (Dentistry), Manovigyana avum Manas Roga (Psychiatry), Panchakarma, Agad Tantra avum Vidhi Vaidyaka (Toxicology and Jurispru-dence), Sangyaharana (Anaesthesiology) and Chhaya avum Vikiran Vigyan (Radiology).

Ayurveda provides a host of treatments for complex diseases, and the traditional and time-tested systems of Ayurveda for holistic healing are available around the country. During recent years, Kshar Sutra and Panchkarma have become popular among the public. Kshar Sutra is an Ayurvedic para-surgical intervention using a medicated thread, which is extremely effective in the treatment of if stula-in-ano and conditions which demandgradual excision of overgrown soft tissues like polyps, warts, non healing chronic ulcers and sinuses and papillae without the need of hospitaliza-tion, antibiotics or anesthesia. Panchakarma is a unique therapeutic procedure for the radical elimination of disease-causing-factors and to maintain the equilibrium of doshas. The Panchakarma therapy reduces the chances of recurrence of the disease and promotes positive health by rejuvenating the vital body systems.

2)

Unani: The Unani System of Medicine, which originated in Greece and passed

through

many

countries

before

establishing

itself

in

India

during the medieval period, is based on well-established knowledge and practices relating to the promotion of positive health and prevention

of diseases. The Unani System has grown out of the fusion of the traditional knowledge of ancient civilizations like Egypt, Arabia, Iran,China, Syria and India. The system of medicine was documented in Al-Qanoon, a medical Bible, by Sheikh Bu-Ali Sina (Avicena) (980-1037 AD), and in Al-Havi by Razi (850-923 AD) and in many other books written by the Unani physicians. The Unani system is based on the 19

Humoral theory i.e, the presence of blood, phlegm, yellow bile and black bile in a person. The temperament of a person can accordingly be sanguine, phlegmatic, choleric and melancholic depending on the presence and combination of humors. According to Unani theory, the humors and medicinal plants themselves are assigned temperaments. Any change in quantity and quality of the humors, brings about a change in the status of the health of the human body. A proper balance of humors is required for the maintenance of health. Treatment in Unani consists of three components, namely, preventive, promotive and curative.

Unani system of Medicine has been found to be efficacious in conditions like Rheumatic Arthritis, Jaundice, Filariasis,Eczema, Sinusitis and Bronchial Asthma. For the prevention of disease and promotion of health, the Unani System emphasizes six essentials (Asbab-e-Sitta Zarooria):- (a) pure air (b) food and water (c) physical, movement and rest (d) psychic movement and rest (e) sleep and wakefulness and (f) retention of useful materials and evacuation of waste

materials from the body.

There are four forms of treatment in Unani medicine-Pharmaco therapy, Dietotherapy, Regimental Therapy and Surgery. Regimental therapy (Ilaj BidTadbir) is a special technique/ physical method of treatment to improve the constitution of body by removing waste materials and improving the defense mechanism of the body and protect health. The Unani system of medicine offers various methods of treatment which are used for specific and complicated diseases. It emphasizes the use of naturally occurring, mostly herbal, medicines and also uses some medicines of animal, marine and mineral origin. During the last 50 years,seven Post graduate specialities have been developed (i) Kulliyat(Fundamentals of Unani System of Medicine (ii) IlmulAdviya (Pharmacology) (iii) Amraz-e-Niswan (Gynaecology) (iv) Amraz-e-Atfal (Paediatrics) (v) Tahafuzzi-wa-Samaji-Tib (Social Medicine) (vi)Moalejat(Medicine) and (vii) Jarahiyat (Surgery). and Preventive

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3)

Siddha: The Siddha System is one of the oldest systems of medicine in India and is

practised in the Tamil speaking parts of India and abroad. The term Siddha means 'achievements' and Siddhars were saintly persons who achieved 'results' in medicine. Eighteen Siddhars were said to have contributed towards the development of this medical system. Siddha literature is in Tamil and it is largely therapeutic in nature.

The Siddha system of Medicine emphasizes that medical treatment is oriented not merely to disease but has to take into account the patient, the environment, age, sex, race, habits, mental frame, habitat, diet, appetite, physical condition, physiological constitution, etc. This means the treatment has to be individualistic and ensures a low probability of incorrect diagnosis or treatment. The diagnosis of diseases in Siddha involves identifying its causes through the examination of pulse, urine, eyes, study of voice, colour of body, tongue and the status of the digestive system.

The system has developed a rich and unique treasure house of drug knowledge in which use of metals and minerals is liberally made. Siddha medicines containing mercury, silver, arsenic, lead and sulphur have been found to be effective in treating certain infectious diseases including venereal diseases. The Siddha system is effective in treating chronic cases of liver, skin diseases especially "Psoriasis", rheumatic problems, anemia, prostate enlargement, bleeding piles and peptic ulcer. During the last four decades, there has been continuous development in Siddha medical education and this has led to the establishment of the six specialities in post-graduate teaching and training. These are Maruthuvam (General Medicine), Sirappu Maruthuvam

(SpecialMedicine), Kuzhanthai Maruthuvam (Paediatrics), Gunapada(Pharmacology), Noi Nadal (Pathology) and Nanju Nool and Maruthuva Neethinool (Toxicology).

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4)

Yoga: Yoga is primarily a way of life, first propounded by Patanjali in systematic

form. It consists of eight components namely, restraint, observance of austerity, physical postures, breathing exercise, restraining of sense organs, contemplation, meditation and samadhi. These steps in the practice of Yoga have the potential to improve social and personal behavior and to improve physical health by encouraging better circulation of oxygenated blood in the body, restraining the sense organs and thereby inducing tranquility and serenity of mind. The practice of Yoga has also been found to be useful in the prevention of certain psychosomatic disorders/diseases and improves individual resistance and ability to endure stressful situations. Yoga is a promotive, preventive and curative intervention. A number of postures are described in Yogic works to improve health, to prevent diseases and to cure illness. The physical postures are required to be chosen judiciously and have to be practised in the correct way so that the benefits of prevention of disease, promotion of health and therapeutic use can be derived from them.

Studies have revealed that Yogic practice improves intelligence and memory and help in developing resistance to situations of

strain and stress and also help individuals to develop an integrated personality. Meditation can stabilize emotional changes and prevent abnormal functions of the vital organs of the body. Studies have shown that meditation not

only restrains the sense organs but also controls the nervous system. Yoga today is no longer restricted to hermits, saints, sages and it has taken its place in everyday life and has aroused a world-wide awakening and acceptance.

5)

Naturopathy: Naturopathy is a drugless, non-invasive therapy involving the use of natural

materials in its treatment based on the theories of vitality, toxiemia, self healing

22

capacity of the body and the principles of healthy living. Naturopathy is not only a system of treatment but also a way of life. It is a system of medicine widely practised, globally accepted and recognized by WHO. Naturopathy is a system of living in harmony with constructive principles of Nature on the physical, mental, moral and spiritual planes. It has great promotive, preventive, curative as well as restorative potential. Naturopathy is a scientific system of healing, stimulating the body's inherent power to regain health with the help of five great elements of nature - Earth, Water, Air, Fire and Ether.

It is a call to "Return to Nature" and to resort to a simple way of living in harmony with the self, society and environment, advocating 'Better Health without Medicines'. It is very effective in chronic, allergic and stress related disorders. The theory and practice of Naturo-pathy are based on a holistic view-point. The advocates of Naturopathy pay particular attention to eating and living habits, adoption of purificatory measures, use of hydro-therapy, cold packs, mud packs, baths, massages, fasting,etc.

6)

Homoeopathy: The Physicians from the time of Hippocrates (around 400 B.C.) have observed

that certain substances could produce symptoms of a disease in healthy people similar to those of people suffering from the disease. Dr. Christian Friedrich Samuel Hahnemann, a German physician, scientifically examined this phenomenon and codified the fundamental principles of Homoeopathy. Homoeopathy was brought to India around 1810 A.D. by European missionaries and received official recognition by a resolution passed by the Constituent Assembly in 1948 and then by the Parliament.

The first principle of Homoeopathy 'Similia Similibus Curentur', says that a medicine which could induce a set of symptoms in healthy human beings would be

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capable of curing a similar set of symptoms in human beings actually suffering from the disease. The second principle of 'Single Medicine' says that one medicine should be administered at a time to a particular patient during the treatment. The third principle of 'Minimum Dose' states that the bare minimum dose of a drug which would induce a curative action without any adverse effect should be administered. Homoeopathy is based on the assumption that the causation of a disease mainly depends upon the susceptibility or proneness of an individual to the incidence of the particular disease in addition to the action of external agents like bacteria, viruses, etc.

Homoeopathy is a method of treatingdiseases by administering drugs which have been experimentally proved to possess the power to produce similar symptoms on healthy human beings. Treatment in Homoeopathy,

which is holistic in nature, focuses on an individual's response to a specific environment. Homoeopathic medicines are prepared mainly from natural substances such as plant products, minerals and animal sources. Homoeopathic medicines do not have any toxic, poisonous or side effects. Homoeopathic treatment is economical as well and has a very broad public acceptance.

Homoeopathy has its own areas of strength in therapeutics and it is particularly useful in treatment for allergies, autoimmune disorders and viral infections. Many surgical, gynaecological and obstetrical and paediatric conditions and ailments affecting the eyes, nose, ear, teeth, skin, sexual organs, etc. are amenable to homoeopathic treatment. Behavioral disorders, neurological problems and metabolic diseases can also be successfully treated by Homoeopathy. Homoeopathy can also be useful for de-addiction from drugs, tobacco and alcohol. Apart from the curative aspects, Homoeopathic medicines are also used in preventive and promotive health care. In recent times, there is an emergence of interest in the use of Homoeopathic medicines in veterinary care, agriculture, dentistry, etc. Homoeopathic medical education has developed in seven specialties in post-graduate teaching, which are Material Medical, Organon of Medicine, Repertory, Practice of Medicine, Paediatrics, Pharmacy and Psychiatry. 24

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3.2

ABOUT THE INDUSTRY

Steel was discovered by the Chinese under the reign of Han dynasty in 202 BC

till 220 AD. Prior to steel, iron was a very popular metal and it was used all over the globe. Even the time period of around 2 to 3 thousand years before Christ is termed as Iron Age as iron was vastly used in that period in each and every part of life. But, with the change in time and technology, people were able to find an even stronger and harder material than iron that was steel. Using iron had some disadvantages but this alloy of iron and carbon fulfilled all that iron couldnt do. The Chinese people invented steel as it was harder than iron and it could serve better if it is used in making weapons. One legend says that the sword of the first Han emperor was made of steel only. From China, the process of making steel from iron spread to its south and reached India. High quality steel was being produced in southern India in as early as 300 BC. Most of the steel then was exported from Asia only. Around 9th century AD, the smiths in the Middle East developed techniques to produce sharp and flexible steel blades. In the 17th century, smiths in Europe came to know about a new process of cementation to produce steel. Also, other new and improved technologies were gradually developed and steel soon became the key factor on which most of the economies of the world started depending. THE GLOBAL STEEL INDUSTRY: The current global steel industry is in its best position in comparing to last decades. The price has been rising continuously. The demand expectations for steel products are rapidly growing for coming years. The shares of steel industries are also in a high pace. The steel industry is enjoying its 6th consecutive years of growth in supply and demand. And there is many more merger and acquisitions which overall buoyed the industry and showed some good results. The supreme crisis has lead to the recession in economy of different countries, which may lead to have a negative effect on whole steel industry in coming years. However steel production and consumption will be supported by continuous economic growth.

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CONTRIBUTION OF COUNTRIES TO GLOBAL STEEL INDUSTRY: The countries like China, Japan, India and South Korea are in the top of the above in steel production in Asian countries. China accounts for one third of total production i.e. 419m ton, Japan accounts for 9% i.e. 118 m ton, India accounts for 53m ton and South Korea is accounted for 49m ton, which all totally becomes more than 50% of global production. Apart from this USA, BRAZIL, UK accounts for the major chunk of the whole growth. Steel production and consumption will be supported by continuous economic growth. Country Wise Crude Steel Production During The Year Of 2012-13 Country Crude Steel Production CHINA JAPAN UNITED STATES RUSSIA SOUTH KOREA F.R.GERMANY UKRAINE BRAZIL INDIA ITALY STEEL INDUSTRY IN INDIA: Steel has been the key material with which the world has reached to a developed position. All the engineering machines, mechanical tools and most importantly building and construction structures like bars, rods, channels, wires, angles etc are made of steel for its feature being hard and adaptable. Earlier when the alloy of steel was not discovered, iron was used for the said purposes but iron is usually prone to rust and is not so strong. Steel is a highly wanted alloy over the world. All the countries need steel for the infrastructural development and overall growth. (mtpa) 272.5 112.7 98.9 65.6 47.5 46.4 38.7 32.9 32.6 28.4

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Steel has a variety of grades i.e. above 2010 but is mainly categorized in divisions steel flat and steel long, depending on the shape of steel manufactured. Steel flat includes steel products in flat, plate, sheet or strip shapes. The plate shaped steel products are usually 10 to 200 mm and thin rolled strip products are of 1 to 10 mm in dimension. Steel flat is mostly used in construction, shipbuilding, pipes and boiler applications. Steel long Category includes steel products in long, bar or rod shape like reinforced rods made of sponge iron. The steel long products are required to produce concrete, blocks, bars, tools, gears and engineering products. After independence, successive governments placed great emphasis on the development of an Indian steel industry. In Financial Year 1991, the six major plants, of which five were in the public sector, produced 10 million tons. The rest of India steel production, 4.7 million tons, came from 180 small plants, almost all of which were in the private sector. India's Steel production more than doubled during the 1980s but still did not meet the demand in the mid-1990s, the government was seeking private-sector investment in new steel plants. The commissioning of Tata Iron & Steel Company's production unit at Jamshedpur, Bihar in 1911-12 heralded the beginning of modern steel industry in India. At the time of Independence in 1947 India's steel production was only 1.25 Mt of crude steel. Following independence and the commencement of five year plans, the Government of India decided to set up four integrated steel plants at Rourkela, Durgapur, Bhilai and Bokaro. The Bokaro plant was commissioned in 1972. The most recent addition is a 3 Mt integrated steel plant with modern technology at Visakhapatnam. Steel Authority of India (SAIL) accounts for over 40% of India's crude steel production. SAIL comprises of nine plants, including five integrated and four special steel plants. Of these one was nationalized and two were acquired; several were set up in collaboration with foreign companies. SAIL also owns mines and subsidiary companies.

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DEMAND OF STEEL IN INDIA: Driven a booming economy and concomitant demand levels, consumption of steel has grown by 12.5 per cent during the last three years, well above the 6.9 percent envisaged in the National Steel Policy. Steel consumption amounted to 58.45 mt in 2006-07 compared to 50.27 mt in 2005-06, recording a growth rate of 16.3 per cent, which is higher than the world average. During the first half of the current year, steel consumption has grown by 16 per cent. A study done by the Credit Suisse Group says that India's steel consumption will continue to grow by 17 per cent annually till 2012, fuelled by demand for construction projects worth US$ 1 trillion. The scope for raising the total consumption of steel in the country is huge, as the per capita steel consumption is only 35 kgs compared to 150 kg in the world and 250 kg in China. With this surge in demand level, steel producers have been reporting encouraging results. For example, the top six companies, which account for 70 percent of the total production capacity, have recorded a year-on-year growth rate of 13.4 per cent, 15.7 per cent and 11.7 per cent in net sales, operating profit and net profit, respectively, during the second quarter of 2011-12 We expect strong demand growth in India over the next five years, driven by a boom in construction (43%-plus of steel demand in India). Soaring demand by sectors like infrastructure, real estate and automobiles, at home and abroad, has put India's steel industry on the world steel map. SUPPLY OF STEEL IN THE INDIAN MARKET: Over the past ten years Indias crude steel output rose nearly 7%per year to 55.3 million tons , while global crude steel output increased by 4% (Germany managed an increase of just under 1%p.a.) Although India is the worlds eighth largest steel producer, its3%-plus share of global steel output is still very low; it is roughly the same as Ukraines share of world steel production. China, the worlds biggest steelmaker, produces nearly ten times as much as India. In 2010 Indias crude steel output of 46.5 million tons was 8% higher than in 2011; only in China was the growth rate considerably higher at 15%. By contrast, production volumes fell in the US and the EU-25 by nearly 5% and roughly 4% respectively. In the first five months of 2012 Indian steel production continued to expand unabated, rising 10% yoy. We

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forecast a significant increase in output by the Indian steel industry over the medium term. The entire industrys contribution to gross domestic product should rise in the coming years to more than 30% compared to just fewer than 27% at present. The growth drivers are the expanding client industries automotive engineering (production up 16% p.a.), mechanical engineering (up 10% p.a.) and construction (up 6% p.a.).

RISK FACTORS : Even though India is now one of the worlds top ten steelmakers its domestic output is insufficient to meet the demand in all segments. In 2005, some 4.7 million tons of steel were imported, compared with only 2.2 million ten years earlier (an annual increase of 8%). The growth in Indian import demand in 2010 of around 2 million tons is roughly equivalent to the total annual output of Hungary. Low steel prices smooth the way for imports from Russia, Ukraine and Kazakhstan. The geographical proximity of Japan, South Korea and China makes them important suppliers as well. We do not expect India to be self-sufficient in many segments over the medium term. There are several reasons for this: firstly, steel consumption is rising very fast as a consequence of the prospective dynamic economic growth. Secondly, there is demand for high-quality products which India will not be able to supply in sufficient quantities for the foreseeable future. These include products with surface finishing that helps them to be more durable and retain their value for longer. In general, the trend towards weight-optimized components persists; this improves the prospects for Western European exporters in the Indian market. As a member of the WTO (since 1995) India is obliged to gradually abolish import restrictions, so importing steel should be far less problematic in future. STEEL PRODUCTION IN INDIA: India is one of the few countries where the steel industry is poised for rapid growth. Indias share in world production of crude steel increased from 1.5% in 1981 to around 3.5 % in 2004. While plant closures and privatization are rare in India, the private sector is considered to be the engine of growth in the steel industry and technological changes and modernization are taking place in both the public and the

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private sector integrated steel plants in India. Steel production of India accounted for 14.33 million tons in 1990-91, which gradually increased to 36.12 million tonnes in 2003-04, as shown in Table III. The Indian steel industry got a giant importance in the recent past when the Tata Steel purchased the Corus steel. Today India plays a significant role in the production of steel in the world. The Indian steel industry is growing at 8.74 % of CAGR. Steel demand continued to remain upbeat in 2011-2012 with consumption of finished steel growing by a decent 6.8% during April-may. During a same period import surged by a healthy 10 % to 0.7 million tonnes. While export reported a 33% decline to 0.6 million tonnes. While imports and consumption of finished steel reported a healthy rise, production of the steel continued to rise at a tepid pace. During April 2008 finished steel output rose by a modest 3.8 %. Further in may it increased by 5.2%. Aggregate production growth during April-may stood at 5.1 % In view of no major capacities coming on-stream we estimate finished steel production to touch 120 million tonnes in 2012-2013. On the basis for last year of 92.7 million tonnes, the steel production growth for 2012-2013 comes to around 14 %. However the joint plant committee has been revising its annual figures upwards for the last 2-3 years. PRODUCTION FUNCTION AND INPUTS: Production of a product (or a set of products) is generally based on a technological relationshipamounts of certain factors of production (inputs) are converted into a product based on some technological constraints. The technological relationship is termed by economists as the "production function." In more technical terms, the production function can be defined as the function that shows the most output that existing technology permits the manufacturing firm to extract from each quantity of inputs. The production function thus summarizes the characteristics of existing technology at a given time. For example. Suppose Better Steel Corporation decides to produce a certain quantity of steel. It can do so in many different ways. It can choose from among available technological choices: it can use open-hearth furnaces, basic oxygen furnaces, or electric furnaces. Similarly, Better Steel Corporation can choose from various types of iron ore and coal. Given that Better Steel has decided to produce a certain quantity of steel, which production technique will it use; that is, what 31

particular combination of inputs will it decide on? An economist's answer to this question is: the one that minimizes the firm's costs and maximizes its profits. Given that a technology has been chosen, in general, as inputs used in the production of a commodity increase the total output increases as well. It is useful to understand different kinds of inputs.

FIXED AND VARIABLE INPUTS : Primarily, there are two kinds of inputsfixed and variable. A plant and a factory shed are examples of fixed inputs (or factors) of production. These inputs are called "fixed" inputs as the quantities needed of these inputs remain fixed, up to point, as the quantity produced of the product (the output) increases. Using the steel industry as an example, a blast furnace used in producing steel is considered a fixed input Better Steel Corporation can produce more steel by using more raw materials, and get more production out of the existing blast furnace. It should be noted that fixed input does remain fixed for all levels of output produced. As the scale of production increases, the existing plant may no longer suffice. Suppose that the blast furnace chosen by the steel firm can, at the very maximum, produce 100,000 tons of steel per day. If Better Steel Corporation needs to supply 150,000 tons of steel per day (on average), it has to add to capacitythat is, it has to install a new blast furnace. Thus, even a "fixed input" does not remain fixed forever. The period over which a fixed input remains fixed is called the "short run." Over the "long run," even a fixed input varies. Inputs that vary even in the short run are called "variable" inputs. In the above example of steel manufacturing, iron ore serves as a variable input. Given the fixed input (the blast furnace in this case), increasing the quantity of the variable input (iron ore) leads to higher levels of output (steel). For a manufacturing firm, it is not important what combination of fixed and variable inputs is used. As a firm is interested in maximizing profits, it would like to minimize costs for any given level of output produced. Thus, costs associated with inputs (both fixed and variable) are the main concern of the firm engaged in the production of a particular commodity.

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TOTAL AND AVERAGE COSTS: A manufacturing firm, motivated by profit maximization, calculates the total cost of producing any given output level. The total cost is made up of total fixed cost (due to the expenditure on fixed inputs) and total variable cost (due to the expenditure on variable inputs). Of course, the total fixed cost does not vary over the short run only the total variable cost does. It is important for the firm also to calculate the cost per unit of output, called the "average cost." The average cost also is made up of two componentsthe average fixed cost (the total fixed cost divided by the number of units of the output) and the average variable cost (the total variable cost divided by the number of units of the output). As the fixed costs remain fixed over the short run, the average fixed cost declines as the level of production increases. The average variable cost, on the other hand, first decreases and then increaseseconomists refer to this as the U-shaped nature of the average variable cost. The U-shape of the average variable cost (curve) occurs because, given the fixed inputs, output of the relevant product increases more than proportionately as the levels of variable inputs used increasethis is caused by increased efficiency due to specialization and other reasons. As more and more variable inputs are used in conjunction with the given fixed inputs, however, efficiency gains reach a maximumthe decline in the average variable cost eventually comes to a halt. After this point, the average variable cost starts increasing as the level of production continues to increase, given the fixed inputs. First decreasing and then increasing average variable cost leads to the U-shape for the average variable cost (curve). The combination of the declining average fixed cost (true for the entire range of production) and the U-shaped average variable cost results in the U-shaped behavior of the average total cost (curve), often simply called the average costs. AVERAGE COST AND ECONOMIES OF SCALE: Economies of scale are defined in terms of the average cost per unit of output produced. When the average cost is declining, the producer of the product under consideration is reaping efficiency gains due to economies of scale. So long as the average cost of production is declining the firm has an obvious advantage in increasing the output level (provided, there is demand for the product). Ideally, the

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firm would like to be at the minimum average cost point. However, in the short run, the firm may have to produce at an output level that is higher than the one that yields the minimum average total cost. When a firm has to add to production capacity in the long run, this may be done by either duplicating an existing fixed input (for instance, a plant) or increasing the size of the plant. Usually, as the plant size increases, a firm is able to achieve a new minimum average cost point (lower than the minimum average cost achieved with the previous smaller capacity) plant. For example, in the case of Better Steel Corporation, the average cost per ton of steel at the minimum average cost point with the larger blast furnace may be 20 percent less than the average cost at the minimum average cost point with smaller blast furnace. Thus, in the long run, a firm may keep switching to larger and larger plants, successively reducing the average cost. One should, however, be warned that due to technological constraints the average cost is assumed to start rising at some output level even in the long runthat is, the average cost curve is U-shaped even in the long run. Therefore, while looking at the average cost per unit of output is the key to understanding economies of scale, it is useful to remember that the average cost declines up to a point in the short run, and it may decline even more in the long run (also up to a point), as higher and higher levels of output are produced. ECONOMIES OF SCALE AND OLIGOPOLY: An oligopoly is a market form in which there are only a few sellers of similar products. Low costs of production (cost per unit or the average cost) can only be achieved if a firm is producing an output level that constitutes a substantial portion of the total available market. This, in turn, leads to a rather small number of firms in the industry, each supplying a sizable portion of the total market demand.

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ECONOMIES OF SCALE AND INTERNATIONAL TRADE: Participating in foreign trade is considered an important way to reap advantages of unrealized potential of economies of scale. Usually, foreign trade is based on specializationeach country specializing in production of goods and services in which it has the comparative advantage. With the possibility of the benefits from economies of scale, there are advantages in engaging in specialization and foreign trade even if there is no difference among countries with respect to the economic efficiency with which they produce goods and services. As an example, suppose that a country may experience economies of scale in producing a particular commodity (for instance, steel). However, this country is producing this commodity at such a low output level that the average cost per unit of the output is high. Due to the high average cost it does not have the comparative advantage in exporting this product to foreign countries. Now, assume that this country specializes in production of this commodity and exports to another country. The other country does the sameit specializes in the production of another product (say, aluminium) and exports to the first country. Thus, the first country specializes in the production of steel and the second country specializes in the production of aluminium. If economies of scale exist in steel and aluminum industries, firms can serve the combined markets of both countries and supply both goods at lower prices (assuming some of the advantages of lower costs are passed on) than if they only reach their respective domestic markets. This is a major argument for an international economic association such as the European Common Market. In addition to the pure economies of scale in production, there are "economies of scale" in learning associated with specialization in the foreign trade context. In this the average cost per unit goes down as economic efficiencies increase due to learning. In the aircraft and machine tool industries, manufacturers are well aware of reductions in average costs due to learning. It has been estimated that the average cost per unit of new machine tools tends to decline by 20 percent each time the cumulated output is doubled, due to improvement in efficiency through learning by individuals and organizations.

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In an industry where learning is an important factor in causing economies of scale, there are advantages in one country specializing in the production of that product. In such a case, specialization can reduce average costs and retail prices to lower levels than if each nation attempts to be self-sufficient in the products subject to economies of scale in learning. EXPORT AND IMPORT OF STEEL FROM INDIA The steel exports of India over the decade have the compounded annual growth rate (CAGR) of 22.27% against CAGR of imports of steel, which accounted 14.20% in the respective period. In 2001-02, very inception of the Liberalization, the steel exports amounted to 368 thousand tons, which increased year-by-year and reached to 5221 thousand tonnes in 2011-12. It accounted for thirteen-fold increase over the period. The Annual growth rates of exports of steel for the period showed the fluctuating trend, which ranged between 14.41% EXPORTS OF IRON & STEEL : Iron & Steel are freely exportable. Advance Licensing Scheme allows duty free import of raw materials for exports. Duty Entitlement Pass Book Scheme

(DEPB) introduced to facilitate exports. Under this scheme exporters on the basis of notified entitlement rates, are granted due credits which would entitle them to import duty free goods. The DEPB benefit on export of various categories of steel items scheme has been temporarily withdrawn from 27th March 2008, to increase availability in the domestic market. SUBSIDIES AND ISSUES OF COMPETITIVENESS : Government support to the steel sector has been substantially reduced in India. A bulk of the state support came in the form of Freight Equalisation Scheme (FRS), whereby the domestic steel prices were sought to be uniform by a system of cross-subsidisation of transportation cost. However, FRS was abolished in 1992. Programmes such as the steel development Fund were also alleged to have conferred benefits and have been countervailed in countries.

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India does not provide direct subsidies for exports, although indirect subsidies on the nature of exemption from tax and import duty are provided. The government has established some schemes to reduce or remove the anti export bias inherent in the system on indirect taxation. Some of the schemes administered with the above purpose, allow importer to benefit from tariff exemption, especially on imports. The detail of some of such schemes, and how they are treated by select countries, are detailed below. The Government of India implements the Export Promotion of Capital Goods (EPCG) scheme which provides for a reduction or exemption of customs duties and an exemption from excise taxes on imports of capital goods. Under this programme, producers may equipment at reduced rates of duty by meeting certain export commitments. The EPCG scheme has been countervailed in the US, Canada, as well as the EU. Countervailing duty investigating agencies have also determined the Indian income-tax exemption scheme providing income-tax exception on profits from export sales as a countervailing subsidy. The income-tax benefits-related export activities are incorporated in secyions 80HHC, 10A and 10B of the Income Tax Act. Export credit on more favourable terms has been a long prevailing export-incentive programme in India. The reserve bank of India has accordingly issued directions to commercial Banks to provide export credit both at pre- and post-shipment stages. Pre-shipment credit ,also known as packaging credit, is advanced by commercial banks to exporters for purchase of raw material or the finished product upon the presentation of confirmed export orders or letters of credit. In the case of post-shipment credit, the credit is granted to an exporter against either shipping bills or drawback claims. India also administers a number of duty drawback schemes that allow for the remission or drawback of import charges levied on inputs that are consumed in the production of an exported product. Schemes such as duty Entitlement pass book Scheme (DEPB) and Duty free Replenishment certificate (DFRC) fall under this category.

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The rationale for operating such schemes is to ensure that manufacturers should not be made to bear the costs of import charges on imported goods that are never sold within the manufacturers domestic market. These duty drawback schemes cannot be classified as export subsidies per se. However, the administration of the schemes in certain cases have been determined or confer export subsidy by various countervailing duty investigations to the extent they have resulted in a remission or drawback of import charges in excess of those levied on inputs that are consumed in the production of the exported product. MAJOR PLAYERS OF STEEL IN INDIA: 1.Public Sector (A) Steel Authority of India Limited (SAIL) Steel Authority of India Limited (SAIL) is a company registered under the Indian Companies Act, 1956 and is an enterprise of the Government of India. It has five integrated steel plants at Bhilai (Chattisgarh), Rourkela (Orissa), Durgapur (West Bengal), Bokaro (Jharkhand) and Burnpur (West Bengal). SAIL has three special and alloy steel plants viz. Alloy Steels Plant at Durgapur (West Bengal), Salem Steel Plant at Salem (Tamilnadu) and Visvesvaraya Iron & Steel Plant at Bhadravati (Karnataka). In addition, a Ferro Alloy producing plant Maharashtra Elektrosmelt Ltd. at Chandrapur, is a subsidiary of SAIL. SAIL has Research & Development Centre for Iron & Steel (RDCIS), Centre for Engineering & Technology (CET), SAIL Safety Organisation (SSO) and Management Training Institute (MTI) all located at Ranchi; Central Coal Supply Organisation (CCSO) at Dhanbad; Raw Materials Division (RMD), Environment Management Division (EMD) and Growth Division (GD) at Kolkata. The Central Marketing Organisation (CMO), with its head quarters at Kolkata, coordinates the country-wide marketing and distribution network. (B) Rashtriya Ispat Nigam Ltd. (RINL) RINL, the corporate entity of Visakhapatnmam Steel Plant (VSP) is the first shore based integrated steel plant located at Visakhapatnam in Andhra Pradesh. The plant was commissioned in August 1992 with a capacity to produce 3 million tonne

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per annum (mtpa) of liquid steel. The plant has been built to match international standards in design and engineering with state-of- the- art technology incorporating extensive energy saving and pollution control measures. Right from the year of its integrated operation, VSP established its presence both in the domestic and international markets with its superior quality of products. The company has been awarded all the three International standards certificates, namely, ISO 9001:2000, ISO 14001: 1996 and OHSAS 18001: 1999. RINL was accorded the prestigious Mini Ratna status by the Ministry of Steel, Govt. of India in the year 2006 and the company is gearing up to complete the ambitious expansion works to increase the capacity to 6.3 mtpa by 2009. RINL has prepared a road map to expand the plants capacity up to 16 mtpa in phases. (C) Metal Scrap Trade Corporation Ltd. (MSTC) MSTC Ltd. (formerly Metal Scrap Trade Corporation Ltd.) was set up on the 9th September, 1964 as a canalizing agency for the export of scrap from the country. With the passage of time, the company emerged as the canalizing agency for the import of scrap into the country. Import of scrap was de-canalized by the Government in 1991-92 and MSTC has since then moved on to marketing ferrous and miscellaneous scrap arising out of steel plants and other industries and importing Coal, Coke, Petroleum products, semi finished steel products like HR Coils and export primarily Iron ore. The Company has also established an e-auction portal and undertakes e-auction of Coal, Diamonds and Steel Scrap and has developed an eprocurement portal in house.

(D) Ferro Scrap Nigam Ltd. (FSNL) FSNL is a wholly owned subsidiary of MSTC Ltd. with a paid up capital of Rs. 200 lakh. The Company undertakes the recovery and processing of scrap from slag and refuse dumps in the nine steel plants at Rourkela, Burnpur, Bhilai, Bokaro, Visakhapatnam, Durgapur, Dolvi, Duburi & Raigarh. The scrap recovered is returned to the steel plants for recycling/ disposal and the Company is paid processing charges on the quantity recovered at varying rates depending on the category of scrap. Scrap is generated during Iron & Steel making and also in the Rolling Mills.

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(E) Hindustan Steelworks Construction Ltd. (HSCL) HSCL was incorporated in June 1964 with the primary objective of creating in the Public Sector an organization capable of undertaking complete construction of modern integrated Steel Plants. HSCL had done the construction work of Bokaro Steel Plant, Vizag Steel Plant and Salem Steel Plant from the inception till commissioning and was associated with the expansion and modernization of Bhilai Steel Plant, Durgapur Steel Plant, IISCO (Burnpur) and also Bhadravati Steel Plant. With the tapering of construction activities in Steel Plants, the company intensified its activities in other sectors like Power, Coal, Oil and Gas. Besides this, HSCL diversified in Infrastructure Sectors like Roads/Highways, Bridges, Dams, Underground Communication and Transport system and Industrial and Township Complexes involving high degree of planning, co-ordination and modern sophisticated techniques. The company has developed its expertise in the areas of Piling, Soil investigation, Massive foundation work, High rise structures, Structural fabrication and Erection, Refractory, Technological structures and Pipelines, Equipment erection, Instrumentation including testing and commissioning. The company has also specialized in carrying out Capital repairs and Rebuilding work including hot repairs of Coke Ovens and Blast Furnaces and other allied areas of Integrated Steel Plants. (F) MECON LTD. MECON is one of the leading multi-disciplinary design, engineering, consultancy and contracting organization in the field of iron & steel, chemicals, refineries & petrochemicals, power, roads & highways, railways, water management, ports & harbors, gas & oil, pipelines, non ferrous, mining, general engineering, environmental engineering and other related/ diversified areas with extensive overseas experience. MECON, an ISO: 9001- 2000 accredited company, registered with World Bank (WB), Asian Development Bank (ADB), European Bank for Reconstruction and Development (EBRD), African Development Bank (AFDB), and United Nations Industrial Development Organization (UNIDO), has wide exposure and infrastructure for carrying out engineering, consultancy and project management services for mega projects encompassing architecture & town planning, civil works, structural works,

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electric, air conditioning & refrigeration, instrumentation, utilities, material handling & storage, computerization etc. MECON has collaboration agreements with leading firms from the USA, Germany, France, Italy, Russia, etc. in various fields. The authorized share capital of the company is Rs. 10,400 lakh (previous year Rs. 4,100 lakh) against which the paid up capital is Rs. 10,313.84 lakh (previous year Rs. 4,013.84 lakh). All the shares are held by the Government of India. 2.Private Sector The private sector of the Steel Industry is currently playing an important and dominant role in production and growth of steel industry in the country. (A)TATA STEEL LTD. Tata Steel has an integrated steel plant, with an annual crude steel making capacity of 5 million tonnes located at Jamshedpur, Jharkhand. Tata Steel has completed the first six months of fiscal 2007-08 with impressive increase in its hot metal production. The hot metal production at 2.76 million tonnes is 4.6%more compared to the corresponding period of the previous year. The crude steel production during the period was 2.43 million tonnes which is marginally lower than the production of 2.45 million tonnes last year. The saleable steel production was at a lower level during the period April September, 2007 (2.34 million tonnes) compared to the corresponding period of last year (2.36 million tonnes). Tata Steel is continuing with its programme of expansion of steel making capacity by 1.8 million tonnes to reach a rated capacity of 6.8 million tonnes. The Project is reported to be moving ahead of schedule and is likely to be commissioned by May 2008 against the original schedule of June 2008. The Company has planned to take the capacity to 10 million tonnes by the fiscal year 2010. Tata Steels Greenfield projects in Orissa and Chattisgarh are progressing on schedule with placement of equipment order for Kalinganagar Project in Orissa and commencement of the land acquisition process. Jharkhand Project is awaiting announcement of Relief & Rehabilitation policy of the State Government.

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(B)ESSAR STEEL LTD. Essar Steel Holdings Ltd. (ESHL) is a global producer of steel with a footprint covering India, Canada, USA, the Middle East and Asia. It is a fully integrated flat carbon steel manufacturerfrom iron ore to ready-to-market products. ESHL has a current global capacity of 8 million tonnes per annum (MTPA). With its aggressive expansion plans in India and other parts of Asia and North America, its capacity is likely to go up to 25 MTPA by 2012. Its products find wide acceptance in highly discerning consumer sectors, such as automotive, white goods, construction, engineering and shipbuilding. Essar Steel Ltd., the Indian Company of Essar Steel Holdings Limited, is the largest steel producer in western India, with a current capacity of 4.6 MTPA at Hazira, Gujarat, and plans to increase this to 8.5 MTPA. The Indian operations also include an 8 MTPA beneficiation plant at Bailadilla, Chattisgarh which has worlds largest slurry pipeline of 267 km to transport beneficiated Iron Slurry to the pellet plant, and an 8 MTPA pellet complex at Visakhapatnam. The Essar Steel Complex at Hazira in Gujarat, India, houses the worlds largest gas-based single location sponge iron plant, with a capacity of 4.6 MTPA. The complex also houses the steel plant and the 1.4 MTPA cold rolling complexes. The steel complex has a complete infrastructure setup, including a captive port, lime plant and oxygen plant. Essar Steel produces highly customized value-added products catering to a variety of product segments and is Indias largest exporter of flat products, selling close to half of its production to the highly demanding US and European markets, and to the growing markets of South East Asia and the Middle East. The companys products conform to quality specifications of international quality certification agencies, like ABS, API, TUV Rhine Land and Lloyds Regist er. Essar Steel is the first Indian steel company to receive an ISO 9001 and ISO 14001 certification for environment management practices. Essar Steel utilizes Hot Briquetted Iron-Direct Reduced Iron (HBIDRI) technology supplied by Midrex Technology, USA along with four 150 tonnes DC electric arc furnaces imported from Clecim, France. The Hazira unit of Essar Steel is equipped with 5.5 million tonnes per annum (MTPA) hot briquetted iron plant, 4.6 MTPA electric are furnace, 4.6 MTPA 42

continuous caster, 3.6 MTPA hot strip mill and 1.4 MTPA Cold Rolling Mill. During the year 2007-08, Essar was awarded costs ISO/TS 16949 and OHSAS 18000 certification. (C) JSW STEEL LTD. JSW Steel is a 3.8 MTPA integrated steel plant, having a process route consisting broadly of Iron Ore Beneficiation Pelletisation Sintering Coke making Iron making through Blast Furnace as well as Corex process Steel making through : BOF- Continuous Casting of slabs Hot Strip Rolling Cold Rolling Mills. JSW Steel has a distinction of being certified for ISO-9001:2000 Quality Management System, ISO-14001:2004 Environment Management System and OHSAS 18001:1999 Occupational Health and Safety Management System. The capacity as on 1.11.2007 stood at 3.8 MTPA and the capacity is likely to rise to 6.8 MTPA by 2008, and further to 9.6 MTPA by 2010.

(D) JINDAL STEEL & POWER LTD. (JSPL) Jindal Steel & Power Limited is one of the fast growing major steel units in the country. The Raigarh plant of JSPL has a present capacity of 1.37 million tonne per annum (MTPA) sponge iron plant, 2.40 MTPA Steel Melting Shop (SMS), 1.0 MTPA plant Mill, 2.30 sinter plant, 0.8 MTPA coke oven and a 330 Mega Watt captive power plant. During the year 2006-07, the company produced 1.19 million tonnes of sponge iron, 0.8 million tonnes of various steel products, 0.57 million tonnes of hot metal and 0.21 million tonnes of rolled products.

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3.3

THEORITICAL OBJECTIVES AND EXPLANATION

SWOT ANALYSIS OF THE INDUSTRY : Strengths 1. Availability of iron ore and coal 2. Low labour wage rates 3. Abundance of quality manpower 4. Mature production base Weaknesses 1. Unscientific mining 2. Low productivity 3. Coking coal import dependence 4. Low R&D investments 5. High cost of debt 6. Inadequate infrastructure Opportunities 1. Unexplored rural market 2. Growing domestic demand 3. Exports 4. Consolidation

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Threats 1. China becoming net exporter 2. Protectionism in the West 3. Dumping by competitors.

FACTORS HOLDING BACK THE INDIAN STEEL INDUSTRY: The growth of the Indian steel industry and its share of global crude steel production could be even higher if they were not being held back by major deficiencies in fundamental areas. Investment in infrastructure is rising appreciably but remains well below the target levels set by the government due to financing problems. 1. Energy supply Power shortages hamper production at many locations. Since 2001 the Indian government has been endeavoring to ensure that power is available nationwide by 2012. The deficiencies have prompted many firms with heavier energy demands to opt for producing electricity with their own industrial generators. India will rely squarely on nuclear energy for its future power generation requirements. In September 2005 the 15th and largest nuclear reactor to date went on-line. The nuclear share of the energy mix is likely to rise to roughly 25% by 2050. Overall, India is likely to be the worlds fourth largest energy consumer by 2010 after the US, China and Japan.

2. Problems procuring raw material inputs Since domestic raw material sources are insufficient to supply the Indian steel industry, a considerable amount of raw materials has to be imported. For example, iron ore deposits are finite and there are problems in mining sufficient amounts of it. Indias hard coal deposits are of low quality. For this reason hard coal imports have increased in the last five years by a total of 40% to nearly 30 million tons. Almost half of this is coking coal (the remainder is power station coal). India is the worlds sixth

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biggest coal importer. The rising output of electric steel is also leading to a sharp increase in demand for steel scrap. Some 3.5 million tons of scrap have already been imported in 2006, compared with just 1 million tons in 2000. In the coming years imports are likely to continue to increase thanks to capacity increases. 3. Inefficient transport system In India, insufficient freight capacity and a transport infrastructure that has long been inadequate are becoming increasingly serious impediments to economic development. Although the country has one of the worlds biggest transport networks the rail network is twice as extensive as Chinas its poor quality hinders the efficient supply of goods. The story is roughly the same for port facilities and airports. In the coming years a total of USD 150 bn is to be invested in transport infrastructure, which offers huge potential for the steel industry. In the medium to long term this capital expenditure will lay the foundations for seamless freight transport.

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3.4 SUMMARY
We have witnessed in last few months, the unfolding of financial crises starting from United States and expanding world over. The exact magnitude and extent of the crises is fiercely debated among the financial experts. However, this real impact on economy can easily be observed across many, if not all sectors. The steel industry has not been spared with the impacts of the financial crises. The total market valuation of Arcelor Mittal, Nippon steel and JEE has dropped by approx $165 billion. The price of billet in Dubai market has dropped from its height of $125/ton in June 2010 to a recent low of $350 /ton. One of the steepest drops witnessed in recent history. The wide spread drop in demand for all types of steel required companies to cur production globally. Arcelor Mittal, one of the largest steel producers, alone has recently announced more than 30% reduction in production. It is only human to be frustrated and uncertain of the future. However, over long term, do we really need to be? We explored the steel production data going back to 1900 during last 100 years the worst drop (13.52%) in steel industry accrued between 1979-82.

This four year drop in global steel production is horrendous. However, if we look at year over year growth changes in steel industry during a 100 year period from 1900 to 2000 a more optimistic picture emerges. There is not even one instance when industry saw a consecutive four year of negative year over year growth. The worst case situation is three years of declining year over year growth during 1930-32, 194446, and 1980-82. Extending the past patterns of data to predict future is fraught with peril. It is none the less an important reminder to us that during tumultuous 100 year period the steel industry has been able to successfully weather world wars ,recession and crises of all the genre. Steel is a resilient industry. It is not to say that the current financial crises should not be taken seriously. It should be however, if history holds the chances the impact of current crises extending beyond 2012 are low. The leading steel companies should take these opportunities to improve their operational efficiency and effectiveness to better prepare themselves for impending growth in coming years.

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4. ANALYSIS AND INTERPRETATION 4.1 INTRODUCTION

This chapter comprises the analysis, presentation and interpretation of the findings resulting from this study. The analysis and interpretation of data is carried out in two phases. The first part, which is based on the results of the questionnaire, deals with a quantitative analysis of data. The second, which is based on the results of the interview and focus group discussions, is a qualitative interpretation. This process usually includes the following steps: Organizing the data for analysis (data preparation) Describing the data Interpreting the data (assessing the findings against the adopted evaluation criteria)

Where quantitative data have been collected, statistical analysis can: help measure the degree of change that has taken place allow an assessment to be made about the consistency of data

Where qualitative data have been collected, interpretation is more difficult. Here, it is important to group similar responses into categories and identify common patterns that can help derive meaning from what may seem unrelated and diffuse responses. This is particularly important when trying to assess the outcomes of focus groups and interviews.

48

It may be helpful to use several of the following 5 evaluation criteria as the basis for organizing and analyzing data: Relevance: Does the intervention address an existing need? (Were the outcomes achieved aligned to current priorities in prevention? Is the outcome the best one for the target groupe.g., did the program take place in the area or the kind of setting where exposure is the greatest?) Effectiveness: Did the intervention achieve what it was set out to achieve? Efficiency: Did the intervention achieve maximum results with given resources? Results/Impact: Have there been any changes in the target group as a result of the intervention? Sustainability: Will the outcomes continue after the intervention has ceased?

Particularly in outcomes-based and impact-based evaluations, the focus on impact and sustainability can be further refined by aligning data around the interventions

Extent: How many of the key stakeholders identified were eventually covered, and to what degree have they absorbed the outcome of the program? Were the optimal groups/people involved in the program?

Duration: Was the projects timing appropriate? Did it last long enough? Was the repetition of the projects components (if done) useful? Were the outcomes sustainable?

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4.2 ANALYSIS Table 1

TREND ANALYSIS EXPORT OF AYURVEDIC PRODUCTS (Value in Rs. Crores.)

Year 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07

Value 627.48 884.65 1107.75 1276.28 1324.73 1364.13 1278.68 1864.88 1227.06 1657.69 1939.96 2186.96

Trend Value 764.55 880.92 997.29 1113.66 1230.02 1346.39 1462.76 1579.13 1695.50 1811.87 1928.23 2044.60

50

2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

2275.64 Exhibit 1

2160.97 2277.34 2393.71 2510.07 2626.44 2742.81

Total Export details of the Marine Products for the last 5 years

EXPORT OF AYURVEDIC PRODUCTS

3000 2500 2000 1500 1000 500 0 Trend Analysis

Interpretation The data available for the thirteen years of exports of AYUSH products (Ayurveda, Yoga, Naturopathy, Unani, Siddha, Homoeopathy) shows constant increase in the export. The export have shown a very good growth in the year (2006-07; 2007-08) the

51

growth of exports have been great and the requirement is also fulfilled by Indian exporters because of the proper production in those years and the proper climatic conditions were also there.. However, apart from that the growth of exports has been registered from the data available of past thirteen years. There is an immense potential in the coming years in this sector because of increasing demand in these markets. Talking about the trend analysis of the data is not having much difference in them but yet increasing so we have an on the line graph because there is not much difference in the data registered. The new reformed policies introduced by the government in the latest foreign trade policy i.e. 2009-2014 have also announced various schemes and incentives for the exporters to promote exports.

Table 2

Export of ayurvedic Products for 5 years

YEAR 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013

Value in USD 124.56 136.78 147.84 156.96 182.18

52

Exhibit 2 Export of ayurvedic Products for 5 years

Value in USD
200 180 160 140 120 100 80 60 40 20 0 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013 Value in USD

53

Table 3

Country Wise Export of Ayurvedic Products (values in USD million) APR-MAR 2012-13 COUNTRY USA Japan UAE Germany Russia Australia (Quantity) 28.35 16.68 1.77 15.56 14.67 9.91

54

Exhibit 3 Country Wise Export of Ayurvedic Products (values in USD million)

Country Wise Export of Ayurvedic Products (values in USD million)

30 25 20 15 10 5 0 Export Value in USD

55

Table 4

Economic region wise Export Analysis for AYUSH Products [Rs Lacs]

Economic region Developed region Developing Country Least Countries Grand Total

Mar.2011 Mar.2012 10906.73 9718.99 11232.81 10899.12 4167.82

Mar.2013 16331.28 12581.43 3691.12

Percentage CAGR 50.09 38.59 11.324 22.37 13.78 10.72

Developed 3011.04

23636.76

26299.75

32603.83

100

17.45

56

Exhibit 4 Economic region wise Export Analysis for AYUSH Products [Rs Lacs]

18000 16000 14000 12000 10000 8000 6000 4000 2000 0 Developed region Developing Country Least Developed Countries Mar.2011 Mar.2012 Mar.2013

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Table 6

Country Wise Export of Marine Products in Dollar $ for 2012 -2013

APR-MAR 2012-13 ITEMS JAPAN USA European Union CHINA South East Asia Middle East OTHERS (Dollar $) 383.07 299.05 241.01 125.66 113.35 38.1 53.11

58

Exhibit 6 Country Wise Export of Marine Products in Dollar $ for 2012 -2013

Export Value $ in 2012 - 2013

400 300 200 100 0 Export Value in $ in 2012 2013

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Table 7

Country Wise Export Variation % in Value of Exports COUNTRY % share to Total JAPAN 11.75 22.30 22.26 USA 13.21 29.81 29.79 European Union 20.18 20.20 CHINA 36.55 11.08 11.10 South Asia 9.33 East 9.44 Q V 44097 642.38 52424 538.75 -8327 103.63 -15.88 19.24 20.23 Q V $ Q V $ 94541 1388.47 287.84 170811 762.48 158.23 * 82572 11969 242.98 46.83 36044 165.25 32.57 14.50 21.21 19.43 26.75 27.67 25.92 Q V $ Q V $ APR-MAR APR-MAR 2002-03 54916 1534.76 317.17 61703 2051.12 424.51 2012-13 64905 1820.69 383.07 49041 1421.38 299.05 -9989 -285.93 -65.90 12662 629.74 125.46 -15.39 -15.70 -17.20 25.82 44.30 41.95 VARIATION %

1145.49 241.01 134767 597.23 125.66

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9.35 Middle East 4.21 2.98 2.98 OTHERS 4.61 4.32 4.32 TOTAL 100.00 100.00 100.00

$ Q V $ Q V $ Q V $

133.15 19668 204.74 42.40 21561 297.36 61.60 467297 6881.31 1424.90

113.35 19159 181.06 38.1 * 21602

19.80 509 23.68 4.30 -41 44.91 8.49 42827 924.26 171.55

17.47 2.66 13.08 11.29 -0.19 17.79 15.99 10.09 15.52 13.69

252.45 53.11 424470 5957.05 1253.35

61

Exhibit 7 Country Wise Export Variation % in Value of Exports

Export Variation in Value between 10 years

50 40 30 20 10 0 -10 -20

Export Variation % in Value

62

Table 8
Port Wise Export of Marine Products in Quantity

Ports

APR- MAR APR- MAR VARIATION 2002-03 2011-12 41517 72035 91483 22154 17692 78097 16966 28143 25935 5803 9979 721 4477 40 0 11361 8338 16489 3417 -306 20973 304 -10493 -8608 -1498 5416 299 -4248 584 233

(%)

CHENNAI KOCHI JNP VIZAG CALCUTTA PIPAVAV TUTICORIN KANDLA PORBANDAR MUMBAI GOA TRIVANDRUM KAKINADA PARADEEP HALDIA

52877 80373 107972 25571 17386 99070 17270 17650 17327 4305 15395 1020 228 624 233

27.37 11.57 18.02 15.42 -1.73 26.86 1.79 -37.28 -33.19 -25.81 54.27 41.47 -94.91 1460 ***

63

KARWAR Total

0 467297

2007 424470

-2007 42827

-100.00 10.09

64

Exhibit 8 Port Wise Export of Marine Products Variation In 10 Years

250000

200000

150000

100000 APR 2012 MAR 2013 APR 2002 MAR 2003

50000

65

Table 9
Port Wise Export Variation of Marine Products in Quantity

Ports

APR- MAR APR- MAR VARIATION 2002-03 2011-12 41517 72035 91483 22154 17692 78097 16966 28143 25935 5803 9979 721 4477 40 0 11361 8338 16489 3417 -306 20973 304 -10493 -8608 -1498 5416 299 -4248 584 233

(%)

CHENNAI KOCHI JNP VIZAG CALCUTTA PIPAVAV TUTICORIN KANDLA PORBANDAR MUMBAI GOA TRIVANDRUM KAKINADA PARADEEP HALDIA

52877 80373 107972 25571 17386 99070 17270 17650 17327 4305 15395 1020 228 624 233

27.37 11.57 18.02 15.42 -1.73 26.86 1.79 -37.28 -33.19 -25.81 54.27 41.47 -94.91 1460 ***

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KARWAR Total

0 467297

2007 424470

-2007 42827

-100.00 10.09

67

Exhibit 9 Port Wise Export of Marine Products Variation In 10 Years

Variation %
1600 1400 1200 1000 800 600 400 200 0 -200 Variation %

68

Table 10

PORT

WISE

EXPORT

OF

MARINE

PRODUCTS

Q: QUANTITY IN M T, V: IN RS. CRORE, $: US$ IN MILLION Ports % share to total CHENNAI 11.32 30.10 30.07 KOCHI 17.20 14.85 14.86 JNP 23.10 13.31 13.34 VIZAG 5.47 12.88 12.86 CALCUTTA 3.72 8.10 Q V $ Q V $ Q V $ Q V $ Q V APR- MAR APR- MAR VARIATION 2002-03 52877 2071.05 428.47 80373 1022.22 211.69 107972 916.29 190.12 25571 886.51 183.27 17386 557.43 2011-12 41517 1570.13 330.35 72035 930.87 195.85 91483 699.19 147.11 22154 771.81 162.39 17692 523.94 11361 500.92 98.12 8338 91.35 15.84 16489 217.10 43.01 3417 114.70 20.88 -306 33.49 27.37 31.90 29.70 11.57 9.81 8.09 18.02 31.05 29.24 15.42 14.86 12.86 -1.73 6.39 (%)

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8.09 PIPAVAV 21.20 7.67 7.70 TUTICORIN 3.70 6.35 6.35 KANDLA 3.78 1.98 1.97 PORBANDAR 3.71 1.40 1.41 MUMBAI 0.92 0.99 0.99 MANGALORE/IC D 2.14 0.94 0.94 GOA 3.29

$ Q V $ Q V $ Q V $ Q V $ Q V $

115.29 99070 527.59 109.67 17270 436.82 90.43 17650 136.14 28.13 17327 96.63 20.05 4305 67.97 14.09

110.24 78097 357.38 75.19 16966 446.27 93.89 28143 163.55 34.41 25935 104.79 22.05 5803 85.54 18

5.05 20973 170.21 34.48 304 -9.45 -3.46 -10493 -27.41 -9.28 -8608 -8.16 -1.99 -1498 -17.57 -3.91

4.58 26.86 47.63 45.86 1.79 -2.12 -3.69 -37.28 -16.76 -18.25 -33.19 -7.79 -9.02 -25.81 -20.54 -21.72

Q V $ Q

9996 64.76 13.44 15395

7423 55.42 11.66 9979

2573 9.34 1.78 5416

34.66 16.85 15.27 54.27

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0.73 0.73 TRIVANDRUM 0.22 0.34 0.34 KAKINADA 0.05 0.14 0.14 PARADEEP 0.13 0.14 0.13 HALDIA 0.05 0.08 0.08 KARWAR 0.00 0.00 0.00 Total 100 100 100

V $ Q V $ Q V $ Q V $ Q V $ Q V $ Q V $

50.11 10.37 1020 23.60 4.89 228 9.68 1.98 624 9.28 1.92 233 5.23 1.08 0 0 0 467297 6881.31 1424.90

34.48 7.26 721 19.69 4.14 4477 184.72 38.87 40 1.32 0.28 0 0 0 2007 7.96 1.68 424470 5957.05 1253.35

15.63 3.12 299 3.92 0.75 -4248 -175.04 -36.88 584 7.96 1.64 233 5.23 1.08 -2007 -7.96 -1.68 42827 924.26 171.55

45.33 43.03 41.47 19.92 18.12 -94.91 -94.76 -94.90 1460 603.03 585.71 *** *** *** -100.00 -100.00 -100.00 10.09 15.52 13.69

71

72

Exhibit 10 PORT WISE EXPORT OF MARINE PRODUCTS

Q: QUANTITY IN M T, V: IN RS. CRORE, $: US$ IN MILLION

% share
35 30 25 20 15 10 5 0 % share

73

4.4 SUMMARY

74

5. FINDINGS, SUGGESTIONS

5.1 FINDINGS

5.3 SUGGESTIONS

75

CONCLUSION

There lies vast potential for growth in the Marine export industry, particularly in exploring unexplored resource that lies with India. Indian marine products are highly preferred in the global market. We would also like to diversify in the near future in other fields such as capture marine fishery, processing and manufacturing processed marine products and developing the ornamental fishery sector, which is unexplored as told to us by Mr. Alphonse Joseph , Managing director, Kollam. Also WTO will play a very important role as this will affect the Export-Import industry as a whole in a Qualitative manner.

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BIBLIOGRAPHY

Books: Websites: Website: 1. www.capital line .com 2. www.economictimes.com 3. www.blonnet.com 4. www.moneycontrol.com 5. www.reportgallery.com 6. www.annualreportservice.com 7. www.pwcglobal.com 8. www.nse-india.com 9. www.ft.com 10. www.sebi.in 11. www.sec.gov 12. www.business-standard .com 13. in.finance.yahoo.com

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