Steel Minister Pushes for Increased Import Duties to Shield Domestic Industry

Union Steel Minister H D Kumaraswamy seeks to convince the finance ministry to raise import duties on steel from 7.5% to 10-12%, aiming to protect the domestic steel industry from cheap imports, specifically from China. He emphasized the need to promote 'Atmanirbhar Bharat' within the steel sector amidst global market challenges.

Union Steel Minister H D Kumaraswamy on Wednesday said he will attempt to persuade the finance ministry to increase duties on steel imports to 10-12% from the current 7.5%.

This measure is aimed at safeguarding the domestic steel industry from a surge in cheaper imports from countries like China. Kumaraswamy highlighted concerns over China's steel dumping practices, reporting that several industry players have approached him over the past two months to discuss the issues hampering the steel industry's growth.

'The problem which you are facing from China, for that I will try to convince the finance ministry to consider raising the duty on steel imports from 7.5% to 10-12%,' he stated at the Fifth Steel Conclave organized by the Indian Steel Association.

The Indian steel industry has also raised alarms over India becoming a net importer of steel in 2023-24, describing the situation as a 'warning signal' for the country's push towards self-reliance or 'Atmanirbhar Bharat.'

As the steel industry advocates for numerous measures to tackle the challenges posed by China's excess steel production, ArcelorMittal Nippon Steel India CEO Dilip Oommen echoed concerns over China's significant steel output and the subsequent oversupply impacting India.

In addressing reporters, the minister affirmed the steel ministry's commitment to navigating the sector towards heightened self-sufficiency, despite global demand fluctuations influenced in part by economic conditions in China. The minister underscored the sector's recent growth trajectory but also recognized the challenges that lie ahead.

To further bolster the industry, Kumaraswamy called for investments in new technologies and the optimization of processes to significantly cut carbon emissions. He pointed to hydrogen as a promising clean fuel for steel production, emphasizing the need for ongoing research and development to fast-track its commercial application.

(With inputs from agencies.)