Context

The Indian steel industry has expressed concern over India becoming a net importer of steel in 2023-24, saying it is a “warning signal” for India which strives to become Atmanirbhar.

1: Dimension- Reason behind the surge

• Predatory imports: India’s steel industry faces threat from predatory imports. Restricting steel imports is crucial to safeguard investments and ensure robust GDP growth.
• Ease of availability: The surge in imports illustrates a broadening appetite for foreign steel products in India due to their ease of availability and wide range of specifications available across various price points.
• Export taxes: In 2023, following the introduction of export taxes on steel and stainless steel by the Indian government, the export share was only 6.5%.
• Red sea crisis impact on exports: The crisis in the Red Sea hit Indian steel exporters particularly hard and caused their logistics costs to explode. 

2: Dimension- Required Measures:

• Arrest predatory imports: There is need for a trade remedial action on an urgent basis to arrest the inbound shipments.
• Increase duty: India needs to remove lesser duty on steel import, as it helps importers and other steel-surplus country for supporting their own steel mills, while India suffers in expanding steel capacity.