Steel Under Siege: India's Battle Against Import Dumping

India's steel sector is under pressure from increased imports and dumping by major global producers. An article in the RBI's Bulletin highlights the challenges and calls for policy measures to enhance domestic competitiveness. Safeguard duties have been implemented, but pricing strategies of exporting nations remain a concern.

The Indian steel industry is grappling with challenges posed by an influx of cheap imports from major global producers, according to a recent Reserve Bank of India (RBI) Bulletin. The report outlines that low import prices have strained domestic production, calling for strategic policy interventions to boost competitiveness.

The October Bulletin article, authored by RBI officials Anirban Sanyal and Sanjay Singh, highlights a surge in imports, which rose 22% in the fiscal year 2023-24, primarily from countries like South Korea, China, and the US. Safeguard duties partially curbed this trend, but the competitive pricing by foreign producers continues to threaten India's market share.

To address these pressing issues, the authors recommend a balanced approach, urging the adoption of innovative, cost-efficient, and sustainable practices to strengthen India's steel sector. With potential threats such as increased US tariffs on imports, the need for strategic policy support remains crucial.

(With inputs from agencies.)