India’s steel imports were reported at 5.51 MnT April-September ’24-25.

The steel ministry in India has proposed a 25 per cent safeguard duty on the import of certain steel items into the country to address concerns raised by the domestic steel industry. The proposal was discussed when the Union Minister of Steel H D Kumaraswamy met Commerce and Industry Minister Piyush Goyal in the national capital. They explored means for work efficiency to increase production, improve quality and increase global competitiveness of steel and heavy industries because both ministries are critical to India’s development process.

The steel ministry also proposed ways to collaborate and ensure ease of doing business for domestic players. The government is working to foster innovation, boost domestic production, and enhance India’s position as a global manufacturing hub. Steel Secretary, Sandeep Poundrik, said that about 62 per cent of steel imports is coming from FTA (free trade agreement) countries at nil duty and that a duty increase would not affect such consignments.

India’s steel imports were reported at 5.51 MnT April-September ’24-25 as against 3.66 MnT of the previous period. China has increased its export to 1.85 MnT during that period which was only 1.02 MnT in the April-September period of financial year 2023-24. Think tank GTRI has called for careful scrutiny of FTAs, as some allow Indian firms to partner with foreign producers and re-import steel at concessional rates, raising concerns about competition.

According to GTRI Founder, Ajay Srivastava, India’s steel user industries are currently struggling with long ports and complicated bureaucracy since more than 10,000 steel user units are facing financial pressure from port issues and unclear regulatory policies. India has signed Free Trade Agreements with Japan, South Korea, Mauritius, and the Association of South East Asian Nations – ASEAN.