Published: 11th Apr, 2024
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.
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