Posted on 24 Oct 2024
Engineering Exports Promotion Council (EEPC) India says steel import restrictions will impact micro, small, and medium enterprises (MSMEs) in the country. This comes as the steel ministry is mulling introducing a temporary safeguard duty to tackle rising China-origin steel imports, Kallanish notes.
MSMEs are considered companies with annual turnover up to INR 2.5 billion ($29.7 million).
Earlier this week, a report suggested the steel ministry plans to introduce the safeguard duty to tackle imports mainly from China (see Kallanish passim).
“The price differential between Chinese steel and Indian-produced steel is significant. This price advantage enables downstream industries, especially MSMEs, to remain competitive in domestic and global markets,” EEPC India chairman Arun Kumar Garodia is quoted as saying by The Hindu.
EEPC notes India’s domestic steel output, which increased 5% between April and August, has not kept pace with domestic steel consumption, which rose by 13.8%. This makes imports a crucial component.
Indian finished steel imports from China rose 31.7% in the period, while from Japan they surged 130% and Vietnam by 52%, the export association points out. The “Make in India” initiative, especially in high-value sectors, would face major issues without affordable steel access, it adds.
While Indian steel producers have expressed their concern over rising cheaper steel imports from China and Vietnam, various Indian MSME trade bodies have countered this by voicing worries about the impact of potential import restrictions.
In September, the Federation of Coimbatore Industrial Associations (FOCIA) expressed its concern over the Ministry of Steel’s proposal to increase the basic customs duty and urged the government to reconsider its stance (see Kallanish passim).
Source:Kallanish
