Steel Import Surge: Balancing Domestic and Global Markets

Amid a supply glut in the steel industry, Secretary Sandeep Poundrik acknowledges the challenges posed by increased imports, especially from FTA countries which currently account for 62% of imports. Despite calls to raise customs duties, the lack of impact on duty-free imports remains a concern for domestic competitiveness.

The Indian steel industry is grappling with a significant supply glut, exacerbated by soaring imports from Free Trade Agreement (FTA) countries entering without duty. These imports now represent a staggering 62% of the total, a factor acknowledged by Steel Secretary Sandeep Poundrik.

Amid growing concerns from domestic steel producers, who face the brunt of these low-cost imports, calls for increased customs duties have mounted. However, Poundrik warns that raising basic customs duty would be ineffective against the majority of imports, which come from FTA nations and are thus duty-exempt.

The first half of the fiscal year saw a sharp 41% increase in imports, while exports plunged by 36%. Inventory levels have swelled, indicative of the industry's challenges. Domestic steel demand, however, rose by 13%, pushing consumption toward 100 kg per capita. As India targets a 300 million tonne capacity by 2030, supply chain concerns linger.

(With inputs from agencies.)