Protection to steel industry

IT will be remembered that in November 1924, the Government of India decided that bounties, not exceeding Rs 50 lakh, should be given to the steel industry for one year from October 1, 1924, to September 30, 1925, and that before this period expired a further inquiry should be made into the condition of the industry to find out what changes should be made for the rest of the period covered by the Steel Industry Protection Act — till March 1927. For this purpose, the Tariff Board were asked in June to conduct a third inquiry and examine the present condition of the industry and submit detailed recommendations regarding its protection. From the report of the board which has just been published, it appears that they have held a very detailed inquiry into the state of the industry, the alternation in prices, the volume of production, the effect of the price levels and the protection on future production. The articles thus affected are: (1) tin plate (2) wire and wire nails, (3) fabricated steel and (4) railway wagons. It was left open to the board to recommend if additional protection was required again and either to suggest higher duties or larger bounties. The board has recommended both, so that the increased bounties might be derived from increased duties. The nature of this inquiry is so technical that ordinary readers cannot easily understand the complications arising from several adverse and unexpected influences on a protected industry. In 1924, protection was granted to the Indian steel industry for a period of three years on the basis of an elaborate inquiry held by the board, and before half this period is over two other inquiries involving supplementary protection in the form of higher duties and bounties have been made.