Worried over large-scale imports amid a sharp fall in international steel prices, Indian manufacturers have sought Government intervention to restrict large-scale imports by imposing stiff trade barriers. The industry has sought the Government to increase import duty on TMT/rebars, stainless steel, hot and cold rolled coils to 10 per cent from 7.5 per cent.
Excess steel capacity in China & other countries is leading to dumping in India. Furthermore, the rouble- Russia’s currency depreciation has also caused dumping in India. Steel products can also be imported from Japan and South Korea free under the free trade agreement.
Earlier the Steel Ministry had written to the Finance Ministry seeking an immediate revision of import duty on steel products. The steel ministry has sought a revision of import duty on long products and HR coils saying it is necessary to raise import duty rates to safeguard TMT/rebar industry.
As per steel ministry data Imports accounted for 12 percent of India’s steel consumption in the nine months ended Dec. 31, compared with 8 percent in the same period year ago. On the same time crude steel output in China, the world’s top producer reached a record last year, while a fall in Russia’s ruble and a free-trade accord between India and South Korea led to a surge in imports from those nations.