Indian steel manufacturers are urging the government to increase tariffs on steel imports, citing a significant rise in lower-priced shipments from China. A recent letter from the Indian Steel Association (ISA) emphasizes the need for tariffs to address this influx. India, the world’s second-largest crude steel producer, became a net importer of steel during the fiscal year ending in March 2024, a trend that has persisted into the current year. Finished steel imports from China reached a seven-year high from April to August, contributing to an overall import total of 3.7 million metric tons—the highest in six years.
In a letter dated September 2, the ISA requested that Finance Minister Nirmala Sitharaman increase the customs duty on steel imports from the current rate to 15 percent. The ISA represents major steel producers, including JSW Steel, Tata Steel, ArcelorMittal Nippon Steel India, and the state-run Steel Authority of India. The association expressed concerns about the rising imports of steel at competitive prices, which they believe poses a threat to domestic production. They also indicated that the trend of increasing steel imports is likely to continue. “There is an imminent threat of further surges in imports in the coming months,” the ISA noted.
Steel Minister HD Kumaraswamy remarked earlier this month that Indian steelmakers are facing challenges due to these cheaper imports. Additionally, the ISA has suggested implementing a further 25 percent import tax on steel.
The ISA also called for the removal of the “lesser duty rule,” which currently allows the import duty to be set only at a level necessary to prevent harm to Indian producers, rather than at a higher rate that could better protect the domestic industry. As of now, neither the Ministry of Finance nor the ISA has provided comments regarding these developments.
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