Wed Nov 20 17:39:58 UTC 2024: ## Steel Imports Flood India Despite Domestic Concerns, Government Acknowledges Problem
**New Delhi, November 20, 2024** – India’s steel industry is grappling with a surge in imports, particularly from countries with free trade agreements (FTAs), leading to concerns about domestic competitiveness. Steel Secretary Sandeep Poundrik acknowledged the “genuine problem” of a supply glut caused by a 41% increase in imports during the first half of the fiscal year (April-September 2024). However, he stated that raising customs duties would be ineffective, as 62% of steel imports already enter the country duty-free under existing FTAs.
Domestic steel producers have been pressing for increased customs duties to counter what they perceive as below-cost imports and dumping. Mr. Poundrik confirmed that the Ministry is aware of the issue and is exploring other avenues to protect the domestic industry, given the limitations imposed by the FTAs.
The increase in imports is particularly stark from China, with imports surging to 1.85 million tonnes (MT) in the first half of the fiscal year, up from 1.02 MT in the same period last year. Overall, India’s steel imports reached 5.51 MT in April-September 2024, compared to 3.66 MT during the same period in 2023. This surge has led to increased inventory levels in Indian steel companies, reaching up to 30 days, compared to the normal 15-16 days. Despite this, steel demand in India has grown by 13% in the first half of the year. The country is planning to increase its steel production capacity to meet growing demand.
While the government acknowledges the challenges facing the domestic steel sector, the significant portion of imports benefiting from FTA concessions presents a major hurdle to implementing effective protectionist measures.
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