Steel Ministry Engages FinMin To Tackle Surging Imports, Safeguard Domestic Market

The Union Steel Ministry is in discussions with the Finance Ministry to explore policy measures aimed at curbing the rising imports of steel and protecting the domestic industry. According to media reports, the measures being considered include duty impositions on specific products and other trade-limiting actions.

Indian steel producers and stakeholders have raised alarms about the increasing volume of steel imports, prompting the Steel Ministry to take action. Presentations highlighting these concerns were made to Ministry officials, including the Minister.

In a significant move on Thursday, the Steel Ministry launched the upgraded Steel Import Monitoring System (SIMS 2.0) to enhance the tracking, reporting, and monitoring of import shipments. The revamp aims to make reporting more rigorous, ensuring that unlicensed sources are flagged and restricted.

"The detailed data will enable Customs to conduct better analysis and risk management of steel imports," said Steel Minister HD Kumaraswamy.

Net Importer Status
The Economic Survey of 2023-24 noted a troubling increase in steel imports, particularly from China, which contributed to India becoming a net importer of steel in FY24. This shift was driven by price differentials between international and domestic steel prices, making imports more affordable and exports less profitable.

In the first quarter of FY25 (April – June), India continued to be a net importer, with steel imports reaching 1.9 million tonnes (mt), a 30 percent increase, while exports fell by 38 percent to 1.3 mt.

Jayant Acharya, Joint MD & CEO of JSW Steel, emphasised the urgency of implementing trade-limiting measures in a timely manner during the company’s post earning brief. "We are taking up the matter with the government for various kinds of trade-limiting measures, which need to be put in a quick response time," Acharya said during a post-results earnings call. He noted that there are visible cases where trade measures compliant with world trade regulations can be expedited.

India's largest steelmaker, JSW Steel, has repeatedly expressed concerns about the rising imports from China and other countries with Free Trade Agreements (FTA), which pose challenges to the domestic steel industry.