Stainless Steel Firms Plead For Protection

New Delhi: The domestic stainless steel industry has urged the government to take preventive measures like safeguard duties to protect the interests of the local players.

The Indian Stainless Steel Development Association (ISSDA) said the sharp increase in finished steel imports is a significant threat to the stability of India's stainless steel industry. Local manufacturers, already grappling with high input costs and market volatility, are now facing intensified competition from cheap imports. "To counter this, we advocate for a stronger focus on the 'Make in India' initiative, particularly within the steel sector. This could involve raising tariffs on finished steel imports, enhancing domestic production infrastructure, and addressing unfair trade practices effectively," ISSDA President Rajamani Krishnamurti said.

The industry looks forward to a suitable level-playing field against China and its circumvented import being pushed into the domestic market through adjacent ASEAN countries in the form of ADD (anti-dumping duty), CVD (countervailing duty) and safeguard duty, Vijay Sharma, Director, Corporate Affairs at Jindal Stainless, said. "We all are aware of the continuous dumping of subsidised substandard stainless steel of Chinese origin in India, which adversely affects the domestic manufacturers, especially the MSMEs," he added. As per markets research firm BigMint, India's stainless steel imports rose by about 3 per cent year-on-year to 1.73 million tonnes in FY25, with China, Indonesia, Vietnam and South Korea being the major contributors to the shipments.

To mitigate this, imposing a safeguard duty is essential, especially during times of global economic uncertainty, trade wars, and geopolitical tensions, plead the industry.