Abstract

The Indian steel industry plays a crucial role in economic development, infrastructure growth, and industrial expansion. With globalization, the integration of steel firms into the Global Value Chain (GVC) has significantly influenced their financial efficiency and competitiveness. This study examines the impact of GVC participation on the financial performance of Indian steel companies, comparing public sector enterprises such as Steel Authority of India Limited and private sector firms like Tata Steel and JSW Steel. The research focuses on key financial indicators including profitability ratios, liquidity, and operational efficiency. It highlights how private firms, with greater global integration, exhibit higher efficiency, better cost management, and improved profitability. In contrast, public sector firms show stability but relatively lower efficiency due to limited global exposure. The study concludes that participation in GVC enhances financial efficiency through technological advancement, optimized supply chains, and access to international markets. However, it also exposes firms to global risks such as price volatility and demand fluctuations. The findings emphasize the need for strategic policy support to strengthen India’s position in the global steel value chain.

Keywords: Global Value Chain, Financial Efficiency, Indian Steel Industry, Profitability, Public vs Private Sector, Globalization