New Delhi, Feb 27 (KNN) India's steel trade deficit has expanded to over Rs 11,500 crore during the April to January period, marking a significant increase of 30 per cent within a one-month span and a 15 per cent rise year-on-year.

This surge in deficit is primarily attributed to the soaring imports from China, which have escalated by approximately 80 per cent year-on-year, as revealed in a Steel Ministry report studied by BusinessLine.

During this timeframe, India found itself as a net importer of steel, witnessing an inflow of 6.8 million tonnes, marking a substantial 35 per cent rise compared to the previous period.

Meanwhile, exports stood at 5.5 million tonnes, depicting a more modest increase of 3.6 per cent.

According to the report's findings, the import of total finished steel amounted to Rs 56,461 crores (USD 6,822 million), while exports of total finished steel were valued at Rs 44,898 crores (USD 5,425 million) for the April to January period of the fiscal year 2023-24.

By comparison, the trade deficit for the corresponding nine-month period (April – December) stood at Rs 8,888 crore.

Imports were valued at Rs 48,027 crore during this timeframe, whereas exports amounted to Rs 39,139 crore.

In the same ten-month period of the previous fiscal year (FY23), India, despite being a net exporter of steel, reported a trade deficit of Rs 10,071 crore.

During this period, imports were recorded at Rs 54,534 crore, while exports stood at Rs 44,463 crore.

The widening trade deficit in the steel sector underscores the challenges faced by India's steel industry amidst increasing imports, particularly from China.

This trend not only impacts the domestic steel sector's competitiveness but also raises concerns regarding trade imbalances and economic sustainability.

As India navigates through these challenges, stakeholders within the steel industry and policymakers may need to explore strategies to enhance domestic production, improve export competitiveness, and address trade dynamics to mitigate the widening trade deficit in the steel sector.

(KNN Bureau)