India’s steel industry is facing serious challenges to its consolidation, said a new report by the Economic Survey Research Institute (ESRI) in New Delhi.
The report, released on Friday, said the country’s steel sector had seen a significant slowdown in the last few years, and its market share had fallen by nearly 25 per cent from 2010-14.
“It is likely that steel industry consolidation will take longer to take place in the near future, due to the challenges in regulatory and operational environments and to regulatory constraints,” the report said.
“The rapid development of regulatory frameworks, particularly the National Thermal Power Act, may be a major factor behind this slowdown in consolidation.”
India’s steel market was worth $1.6 trillion in 2016, the ESRI said.