India Remains Net Importer of Steel as Imports Surge Over 20% in Apr-Jan 2024
India has continued to rely on steel imports as the country recorded a significant rise of over 20% in inbound shipments from April to January 2024. The country’s steel imports reached 8.29 million tonnes (MT) during this 10-month period, compared to 6.89 MT during the same period last year. Meanwhile, India’s steel exports faced a decline, shrinking by nearly 29% to 3.99 million tonnes from 5.62 million tonnes in the previous fiscal year. Industry players are raising concerns over the surge in imports, especially from select countries like China, which has affected the competitiveness of domestic steel producers.
Government’s Role in the Surge and Concerns from Industry
The surge in imports has prompted industry leaders to call for action from the government. Steel Secretary Sandeep Poundrik emphasized that India must add 100 million tonnes (MT) of steel-making capacity by 2030 to reduce dependence on imports. However, the finance ministry has rejected a proposal from the steel ministry to establish a central organization for bulk procurement of green steel. The rejection was based on the fact that most steel purchased for government projects is typically done through contractors, with limited direct involvement from the central government. Tata Steel CEO T.V. Narendran raised concerns about the future of India’s steel industry, warning that the growing reliance on imports could harm long-term competitiveness. Jindal Stainless (JSL) MD Abhyuday Jindal also called on the government to raise the basic customs duty on stainless steel products from non-free trade agreement countries to 15% to protect domestic manufacturers.
Challenges and the Need for Strategic Action
Despite India’s growing steel production capacity, the industry is facing challenges due to global market conditions. Sluggish steel demand and oversupply in global markets have led to the ongoing struggles within the domestic industry. Steel makers have been urging the government to take steps to curb steel imports, ensure fair competition, and boost domestic production capacity to meet growing demand. The Indian steel industry’s continued reliance on imports and the corresponding decline in exports underscore the need for a strategic approach in balancing domestic production and international trade.
