India Launches Probe Into Rising Steel Imports Amidst Growing Trade Debate

ENA Sectors 2024-12-17 17:26:28 New Delhi, Dec 17 (KNN) The Department of Commerce has initiated a comprehensive investigation into steel imports, with the Directorate General of Trade Remedies (DGTR) launching a detailed probe into the recent surge in steel product shipments to India. Commerce Secretary Sunil Barthwal confirmed that the investigation was requested by the steel ministry and will encompass a holistic examination of the entire steel value chain. The investigation will critically assess multiple aspects of steel imports, including hot-rolled (HR) and cold-rolled (CR) coil products, while simultaneously evaluating the potential impacts on downstream industries. Barthwal emphasised that the probe will thoroughly consult stakeholders, including micro, small, and medium enterprises (MSMEs) and industrial sectors, before formulating any recommendations. The potential implementation of a 25 percent safeguard duty on certain steel products has emerged from a high-level meeting on December 2, attended by Steel Minister H D Kumaraswamy and Commerce and Industry Minister Piyush Goyal. However, the proposal has sparked significant debate between domestic steel manufacturers and user industries. Large domestic steel manufacturers advocate for import restrictions, citing concerns about increasing steel imports, particularly from countries like China. Conversely, MSME exporters and industry associations have expressed strong reservations about potential duty increases, arguing that such measures could severely impact their competitiveness and export capabilities. A nuanced perspective from the Global Trade Research Initiative (GTRI) provides additional context to the import dynamics. GTRI Founder Ajay Srivastava noted that steel imports constitute merely 6 percent of domestic production in the fiscal year 2024. Significantly, over half of these imports comprise critical raw materials like steel scrap and semi-finished steel, which directly support domestic production. The final decision on implementing any safeguard duty will ultimately rest with the finance ministry, based on recommendations from the commerce ministry. Industry stakeholders continue to closely monitor the developments, with export organisations like the Federation of Indian Export Organisations (FIEO) urging careful consideration of potential price implications. As the investigation progresses, the delicate balance between protecting domestic manufacturing interests and maintaining export competitiveness remains a central challenge for policymakers. (KNN Bureau) 40292 https://knnindia.co.in/news/newsdetails/sectors/india-launches-probe-into-rising-steel-imports-amidst-growing-trade-debate 2024-12-17 17:26:28 knnindia.co.in India Launches Probe Into Rising Steel Imports Amidst Growing Trade Debate