Steel Duties Threaten MSME Exporters' Competitiveness

MSME exporters in the engineering sector warn that proposed additional duties on steel imports could harm competitiveness and exports. The Hand Tool Association and the Federation of Indian Export Organisations stress that domestic steel price hikes already challenge exporters. A proposed 25% safeguard duty may exacerbate these issues.

MSME exporters within the engineering field have voiced concerns over potential additional duties on steel imports, fearing it would hinder domestic product competitiveness and affect exports. The Hand Tool Association's Chairman, S.C. Ralhan, highlighted ongoing liquidity issues and the already high domestic steel prices.

Ralhan pointed to media reports suggesting the government might impose a 25% safeguard duty, intensifying challenges for MSME exporters. Federation of Indian Export Organisations Director General, Ajay Sahai, emphasized ensuring domestic steel companies do not escalate input prices if additional duties are levied.

The steel ministry's safeguard duty proposal emerged during a meeting between Union Minister of Steel, H.D. Kumaraswamy, and Commerce and Industry Minister, Piyush Goyal. Criticism from domestic steel players concerning inexpensive imports primarily from China has fueled the debate. Think tank Global Trade Research Initiative has reported that significant container delays at ports are damaging India's international stature.

(With inputs from agencies.)