HomeBricks & MortarFICO Voices Opposition to Proposed Steel Safeguard Duty

FICO Voices Opposition to Proposed Steel Safeguard Duty

The Federation of Industrial & Commercial Organisation (FICO) has raised strong objections to the Steel Ministry’s proposed 25% safeguard duty on steel imports, warning that the move could disrupt the economy and critically harm micro, small, and medium enterprises (MSMEs). FICO members argue that the policy would have far-reaching consequences, increasing production costs for industries dependent on steel and making Indian manufacturers less competitive globally.

FICO President Gurmeet Singh Kular highlighted the detrimental impact the safeguard duty could have on the manufacturing sector. With steel being a core input, higher costs would likely cascade across industries, making Indian products less competitive in international markets. The limited competition from imports could also empower domestic steel producers to inflate prices, burdening both businesses and consumers. FICO Chairman KK Seth further emphasised the timing of the proposal, noting that India’s manufacturing output is already at an 11-month low. The safeguard duty could exacerbate the situation, dragging down GDP growth, currently at 5.4%, and potentially forcing businesses to shut down, leading to higher unemployment and inflation.

Manjinder Singh Sachdeva, General Secretary of FICO, criticised the move as contradictory to the government’s ‘Make in India’ vision. He stressed that competitive steel prices are vital for attracting foreign investments and enabling Indian manufacturers to produce high-quality goods. The safeguard duty, he noted, would only benefit a handful of large steel producers at the expense of MSMEs, which comprise over 63 million businesses and form the backbone of the Indian economy. Instead of imposing the duty, FICO members proposed alternative strategies to strengthen the steel sector. These include incentivising domestic steel production, optimising supply chains, and lowering input costs. Such measures, they argued, would enhance the competitiveness of Indian steel producers without jeopardising smaller businesses or consumers. With the steel industry already reporting robust profitability, FICO members deem the additional duty unnecessary. They warn that the move could distort the market, creating inefficiencies and harming the broader economy.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -spot_img

Most Popular

Recent Comments

Noida Property Circle Rates to Increase by 20%

Noida Property Circle Rates to Increase by 20%

0
Uttar Pradesh has proposed a 20% hike in the region’s circle rates, marking the first increase in nine years. The revision, slated to take...
Gyproc India and Dalmia Bharat to Offer Ceiling and Drywall Training

Gyproc India and Dalmia Bharat to Offer Ceiling and Drywall Training

0
Gyproc India and Dalmia Bharat Foundation have joined hands to provide special training in drywall and false ceiling installation. This new training programme aims...
Tata Steel Leads Manufacturing with AI Integration

Tata Steel Leads Manufacturing with AI Integration

0
Tata Steel has integrated over 550 artificial intelligence (AI) models across its operations, transforming manufacturing efficiency, monitoring blast furnace performance, and optimising energy use....
Godrej buys 6.5 acres in Navi Mumbai for Rs 717 crore development

Godrej buys 6.5 acres in Navi Mumbai for Rs 717 crore development

0
A leading real estate company has made a major investment by acquiring 6.5 acres of land in Kharghar, Navi Mumbai, for Rs 717 crore....
UltraTech and Ambuja Cement Stocks Upgraded

UltraTech and Ambuja Cement Stocks Upgraded

UltraTech, one of the sector’s leaders, saw its stock rise by over 4% in early trading, pushing the price to Rs 11,428.55 on the...