Import Of Steel Increased by 49% in FY15

On one hand Indian industry is reeling under slowdown and on the other hand cheap imports are also putting unnecessary pressure on the Indian Inc. If we go by the data presented by the government in the parliament about import of steel during last one year, it is quite clear that cheap import of high end stainless steel has increased at an alarming rate. During FY15 India imported 548 thousand tons of stainless steel, whereas 368 thousand tons of steel was imported during FY14. On the value front it accounts for Rs. 5919 crore of imports during FY15 versus Rs. 4802 crore of steel imported during FY13, showing an increase of whooping 49.1% .

On a question of state of imports in the steel sector, Minister of State of steel Vishnu Deo Sai informed Rajya Sabha recently that “steel is a de-regulated sector. Role of the Government is limited to be that of a facilitator in growth of steel industry in the country.” On the other hand domestic steel manufacturers are continuously raising their voices against increase of imports and requesting government to put duties to limit the imports of steel into the country.

Minister informed that government has taken all these demands into consideration and just to ensure only quality steel, these imports are being allowed to be imported. As far as steps to limit the import of steel into the country are concerned, government has notified Steel and Steel Product (Quality Control) order and subsequent amendment in December 2014. Also anti-dumping duty on hot rolled flat stainless steel from South Korea, China and Malaysia has been imposed, whereas basic customs duty on various categories of steel has been raised by 2.5%. Important to note that consumption of stainless steel for industrial purpose during FY13 was lat 869 thousand tons, in which process industry and power industry accounts for maximum 437 thousand tons followed by Automobiles, Railways and transport.