India’s steel ministry has intensified monitoring
of imports while there are talks of imposing countervailing and anti-dumping
duties where necessary to protect domestic industry from Chinese offloading of
the metal, including shipments routed through other FTA countries, HD
Kumaraswamy, Union Minister for Steel and Heavy Industries told businessline.
Donald Trump’s ascendancy in the
US has led to a situation where tariff wars with China – where domestic economy
is yet to pick up – that could end up in excess steel being exported with India
being a soft target. “The global steel
market is undoubtedly under pressure due to supply excesses in China and
subdued demand. To mitigate risk of cheap imports, including potential
dumping from China, the Ministry has
intensified monitoring. We are (also) exploring options to impose
countervailing and anti-dumping duties where necessary,” he said. “We are
(also) encouraging steel manufacturers to explore high-value applications
(offerings) and diversify the product portfolio to stay competitive.There are
ongoing dialogue with industry to ensure fair domestic pricing and safeguard
consumer interests,” he said.
According to Kumaraswamy, the Ministry has
initiated discussions with the European
Union over its proposed trade barriers. Talks have been initiated with multilateral
organisations and through necessary diplomatic channels to bring down any such
protectionist measures.“The Ministry is closely engaging with its European
counterparts and multilateral organizations to ensure a fair and transparent
trading environment. We are advocating for adherence to WTO norms and
addressing concerns through diplomatic channels,” the Minister said.
The European Union (EU) has reportedly initiated a
review of safeguard measures that currently apply to certain steel imports into
the region, a move that could impact India’s steel exports. The safeguard measure is in the form of an import
quota wherein products imported within the assigned quota enter the EU market
at zero tariffs or lower tariffs. Once the quota is exceeded, a tariff is
imposed on the product which, in the case of steel, is 25 per cent.
Indian steel exports to the EU range between 15 and 40 per cent,
with the former representing the lowest value and the latter representing the
peak value.. New markets for exports of the metal that include across ASEAN,
Middle East and African nations are being explored. The Minister added: “India
is also focusing on diversifying export markets to reduce dependence on Europe.
Enhanced trade ties with ASEAN, Middle East, and African nations are being
explored.” Indian steel exports in
select Middle East markets are under stress in view of rising Chinese offers,
globally.
According to
Kumaraswamy, appropriate policy interventions – safeguard measures, imposition
of anti-dumping duties and stricter quality controls - to curb excessive
imports are being explored to protect domestic industry. He expects picking up
of PLI schemes including the thrust of on PLI 1.1 – the newly launched
incentive scheme – will help improve self-reliance and bring down imports.
A special thrust on pushing green steel investments
are also being looked into. ...“To attract private investments, the
Ministry is offering fiscal incentives such as tax benefits and subsidies on
green technologies. We are also exploring partnerships with global
organizations and multilateral agencies to access green funds and technical
expertise,” Kumaraswamy said.