India Mulls Actions Against Rising Steel Imports Amid Chinese Dominance

India’s steel and trade ministries are actively discussing measures to address a surge in steel imports, particularly from China, according to a government source. The discussions come amid increasing calls from domestic producers for higher tariffs.

India turned into a net importer of steel in the fiscal year that ended in March, with imports continuing to rise sharply in April and May, reaching a five-year high of 1.1 million metric tons, up 19.8% from a year earlier, provisional government data showed.

“The steel ministry has informed the commerce ministry about the alarming rise in imports, prompting calls from industry players for an investigation,” said the source, who declined to be named because of the sensitivity of the matter.

Indian steelmakers, including major producers like Tata Steel, have expressed concerns about the influx of cheap Chinese steel imports. They have repeatedly urged the government to intervene with higher import taxes. However, the Ministry of Steel has been cautious, citing strong local demand as a reason against immediate tariff hikes.

Earlier this week, Ranjan Dhar, Director and Vice President of Sales and Marketing at ArcelorMittal Nippon Steel India, urged the government to consider increasing the basic customs duty on steel to 12.5% from the current 7.5% to address the surge in imports.

The situation is being closely monitored as stakeholders emphasize the need for swift government action to protect the interests of domestic steel producers amid escalating global trade tensions.

(Reporting by Reuters)