Union Steel Minister H D Kumaraswamy on Wednesday, September 4, announced his intention to push for an increase in import duties on steel to counter the dumping of cheap steel from China. Speaking at the Fifth Steel Conclave organised by the Indian Steel Association, Kumaraswamy said he would engage with the finance ministry to raise import duties from the current 7.5% to 10-12%.
Expressing concern over the impact of Chinese steel imports, the minister noted that several industry players have recently approached him to discuss the challenges posed by the influx of low-priced steel. “The problem which you are facing from China… I will try to convince the finance ministry to look at raising the duty on steel imports from 7.5% to 10-12%,” he stated.
Kumaraswamy also highlighted the need to remain vigilant against global challenges, particularly the slowdown in demand resulting from economic issues in China. He emphasised the steel ministry’s commitment to the vision of Aatmanirbhar Bharat and asserted that the Indian steel industry is on the brink of reaching new heights despite these challenges.
Naveen Jindal, Chairman of Jindal Steel and Power Limited (JSPL), echoed the minister’s concerns during the event. Jindal pointed out the surge in steel imports from countries like China, Korea, and Vietnam, which have increased by 50-80% compared to last year. He called for immediate action to protect the domestic industry, stating, “We have written to the Finance Minister and Steel Minister about this… It is fiercely competitive market, prices are lower than anywhere in the world, but the imports are coming in at predatory prices.”
Jindal further emphasised the importance of safeguarding the industry, adding, “Steel demand is only going to increase in India, and there is huge potential for growth, but we need to ensure that the industry is protected from unfair competition.” He also suggested that the current import duty may not be sufficient, saying, “I don’t think 10-12% import duty will be enough; the prices of the steel being dumped are too low.”
Kumaraswamy concluded by underscoring the steel ministry’s commitment to ensuring the growth of the Indian steel industry, particularly as it plays a crucial role in the country’s journey towards Aatmanirbhar Bharat.
