Pest analysis of indian steel industry literature review

For example, power shortages are common across the country, which can stop the production process. Also, the transportation links within the country, for example road and rail connections, are of a low standard which can make the distribution and supply process inefficient.

Whilst the workers in India are paid low wage, Tata steel runs many Health, Education, and Agriculture programs in an attempt to contribute to local and regional development.

Pestle Analysis of TATA Steel

However, when it comes to environmentthe quality of air in India has been adversely affected by industrialization and urbanization, also resulting in health problems.

Political Factors Being one of the largest democracies in the world, India runs on a federal form of government. What is Pestle Analysis? Therefore, there are structures with percentages according to age. Following three decades of stale growth, often blamed on the following of socialist-inspired policies India has progressed towards a free market economy through economic liberaisation.

Technological Factors Technology significantly influences product development and also introduces fresh cost-cutting processes. The taxation system is well-developed and several taxes, such as income tax, services tax and sales tax are imposed by the Union Government.

PESTLE Analysis of India in five Steps

Steelmaking is a heavily polluting industry, and recently there has been a consumer driven shift in corporate values regarding environmental and social impact, favoring fair and environmentally friendly business.

This allows transportation, raw material and other logistical costs to be reduced. As a result, there have been establishments of environmental pressure groups, noise controls, and regulations on waste control and disposal. Social Factors The social factors refer to any changes in trends which would impact a business environment.

These programs also indirectly benefit Tata Steel as if their surrounding workforce is kept healthy and satisfied they are likely to be more productive. Crude steel output at the biggest Indian Steelmaker is roughly tonnes per worker per year, whereas in Western Europe the figure is around tonnes [3].

Being formed in India has proved advantageous to Tata steel due to the close proximity of captive mines of iron ore and coking coal from Jamshedpur. Also, the productivity of the workers in India is much lower than those workers at European based steelworks. Other taxes, such as octroi and utilities, are taken care of by local bodies.

Furthermore, the country also possesses one of the strongest IT sectors in the world, promoting constant IT development, software upgrades and other technological advancements.

Economic Factors The economy of India has been significantly stable, since the introduction of the industrial reform policies in ZGand its large, low-wage workforce. Refresh India, officially known as the Republic of India, is the seventh largest country by area, and the second most populous in the world with more than 1.

The country has also been opening its doors to attract investors and foreign companies to further promote growth. These structures contain varying flexibility, in education, work attitudes, income distribution, and so on. These projects combined with the company values, give Tata Steel an eco-friendly image, which is becoming increasingly important in the current global marketplace.

To expand from India into the global marketplace Tata Steel has made numerous acquisitions including Millennium Steel inNat steel inand Corus Steel in Tata Steel, part of the Tata group, based in Mumbai, has exploits in various categories including tea, automobiles, communications, power and salt.

As a result, the business environment in India is affected by multivariate political factors. However, poor infrastructure in India can have negative impacts on productivity for Tata Steel.PESTLE analysis of India presents the political, economic, social, technological, legal and environmental factors, affecting its external macro environment.

Indian steel industry, having participation from both public sector and private sector enterprises, is one of the fastest growing markets for steel and is also increasingly looking towards exports as driving the growth of the industry.

This research analyzes the Indian Steel Industry in a PEST Framework € AN EMPIRICAL STUDY OF PROFITABILITY ANALYSIS OF SELECTED STEEL COMPANIES IN INDIA To test that companies belong to the same industry whether following different level used for to identify the relationship between short term Profitability analyses of the companies.

5. REVIEW OF THE LITERATURE Dr. S.K. khartik titto Varghese, () they. Indian Steel Industry. Automobile Industry PEST Analysis 1. Market share 28 c. Organizational structure 30 Literature Review 31 Reflections on what has been learned 39 The Indian steel sector enjoys advantages of domestic availability of raw materials and cheap labour.

The Indian steel industry is largely iron-based through the blast furnace (BF) or the direct reduced iron (DRI) route. Indian steel industry is highly consolidated. TATA STEEL and ESSAR STEEL. Indian steel mainly contributes in the finished steels, semi-finished steel, pig iron and stainless steel.

Private sector plays very important role in the Indian steel industry. The private sector in the steel industry contributes approximately 2/3rd of the total market of the steel.

Pest analysis of indian steel industry literature review
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