India’s Steel Imports from China Reach Record High, Raising Concerns
India has seen a dramatic rise in finished steel imports from China, reaching an all-time high during the first eight months of the fiscal year leading up to March 2025. Provisional government data shows that India, the world’s second-largest crude steel producer, has now become a net importer of steel, with imports surging to levels not seen in eight years.
India imported a total of 6.5 million metric tons of finished steel, marking a 26.6% year-on-year increase. Among these imports, China was a dominant player, exporting 1.96 million metric tons of finished steel to India, up 22.8% from the previous year. The steel products shipped included stainless steel, hot-rolled coils, plates, electrical sheets, and galvanized sheets, among others. The significant increase in steel imports from China has sparked concerns within India’s domestic steel industry. Smaller mills, particularly, are struggling to compete with the influx of cheaper Chinese steel, forcing many to reduce production and even consider job cuts. The growing competition from Chinese imports has prompted the Indian government to launch a probe to determine whether to impose a safeguard duty of up to 25% to protect domestic producers. In addition to China, Japan and South Korea have also seen notable increases in exports to India. Finished steel imports from Japan reached a six-year high, more than doubling to 1.4 million metric tons during the same period. Together, China, Japan, and South Korea accounted for 79% of India’s total steel imports from April to November 2024.
India’s steel demand remains robust due to strong economic growth and ongoing infrastructure projects. However, this demand is being met in part by imports, which have steadily increased since India became a net steel importer in the financial year 2023-24. On the export side, India’s finished steel shipments have declined, reaching an eight-year low during the same period. The country’s largest steel export market, Italy, saw a 31.8% drop in imports, though exports to Britain and Belgium showed slight increases. As India navigates the challenges posed by growing steel imports, the government’s actions in investigating potential safeguard duties will be key to protecting its domestic steel industry while maintaining its strong economic trajectory.
