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The surge in steel imports, predominantly from China and routed through Vietnam, raises apprehensions for domestic steel producers while India advocates for localisation.
The Indian Steel Association (ISA) has flagged the persisting worries of escalating imports and soaring raw material prices, terming it as “dumping of steel products” in the market.
The domestic steel makers would thus want India to narrow the entry gate of these products and they will be eying the interim budget for support.
According to reports, India ha been mulling safeguard measures akin to the European Union’s quota system to mitigate inflow surges. An announcement in the interim budget on those lines will be worth watching out for.
Reports also suggest India may consider imposing import restrictions across ports and revisiting the lesser duty rule. Last year, the steel industry had sought from budget stringent safeguard measures, including higher import duties and reinstating anti-dumping measures on various steel products.In a recent interview to PTI, Minister of State (MoS) for Steel Faggan Singh Kulaste said the government is working for a revamped Production Linked Incentive (PLI) scheme 2.0 for the steel sector, highlighting the government’s focus on bolstering the industry and ensuring raw material availability.
With India positioned as the fastest-growing major economy, anticipating significant infrastructure development and manufacturing capacity expansion under ‘Aatmanirbhar Bharat’, the steel industry calls for amplified government capital expenditure to drive infrastructure development. Increased budgetary allocations towards the PLI scheme are also sought by steelmakers to fortify the industry’s growth trajectory.
As the industry braces for increased government support, the momentum in government capital expenditure is pivotal for sustained growth. The looming interim budget is anticipated to unveil measures addressing the challenges faced by the steel sector, navigating a balance between domestic manufacturing fortification and managing the influx of imports.
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