India finally lost $ 12 billion and about 20 million tons of annual steel production

Last week it became finally clear that the largest metallurgical corporations in the world of Posco and Arcelormittal would not invest in India. This solution, coupled with the problems of the domestic Tata Steel, will not allow the Indian government plans to increase production of steel by 300 million tons until 2020.

If Earlier, India was expected to increase the smelting of steel by 50 million tons annually, now this figure can be halved. Thus, due to troubles with the local population and bureaucratic wires, the country will not receive a quarter of the entire volume of steel that was supposed to be produced before 2020.

ArcelorMittal, the largest steel company in the world, abandoned the implementation of the project for the construction of a missile meter with a capacity of 12 million tons per year in Onshesh after a seven -year struggle with bureaucrats in the state government. Posco will not build a metallurgical plant in a carnataka with a capacity of 6 million tons due to the resistance of the local population and bureaucratic red tape in the government.

India has lost investment attractiveness, analysts say. In addition, the country will not be able to restore it over the next few years.

The shares of the largest manufacturer steel in India Tata Steel fell by 45 percent from the beginning of this year, the second -capacity of the Steel Authority capacity showed a shocking drop by 51 percent.

Corporate influences and investments in infrastructure in India began to slow down due to the policy of narrow places and tightening monetary policy aimed at holding back the prices for raw materials. Almost half of the large infrastructure projects, including power plants and oil refineries, are far behind the schedule, giving a vivid idea of ​​the government for the year.

"Political paralysis accepts ugly features, inflicting large losses to the economy," said an analyst from Mumbai Girirage Dag. "This kills the production sector and soon we will see the wave effect in the service sector."