India’s Steel Imports Increasingly Reliant on a Few Countries

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India’s Steel Imports Increasingly Reliant on a Few Countries

Business 21 Mar 2025 05:57 PM IST moneycontrol

India’s steel imports have increasingly become concentrated over the past decade, with a few key supplier nations dominating shipments. Experts attribute this trend to evolving trade policies, shifting global supply chains, and India's growing demand for high-quality specialty steel.

Rising Dependence on Key Suppliers

According to industry data, countries such as China, Japan, and South Korea now account for a significant portion of India's steel imports. In FY24, imports from these nations made up over 70% of total inbound shipments, up from around 55% a decade ago. The surge is largely driven by India's reliance on advanced grades of steel, which are not readily available in domestic production.

Policy & Trade Shifts

The India-Japan and India-South Korea free trade agreements (FTAs) have played a major role in shaping import patterns, allowing duty-free steel imports.
The imposition of tariffs and safeguard measures on certain non-FTA countries has further concentrated imports among a few preferred suppliers.
Growing domestic demand for electrical and automotive-grade steel has led to increased procurement from technologically advanced steelmakers overseas.

Outlook: Balancing Imports & Domestic Production

The Indian government is actively working on policies to reduce import dependence by promoting domestic production of specialized steel under the Production-Linked Incentive (PLI) scheme. However, until local mills scale up production of high-end steel, imports from a select few nations are expected to remain high.

Also Read : Steel Imports Hit New Peak: India’s Trade Balancing Act Asia-Pacific's Iron or Steel Cans Market to Hit 117B Units, $33.5B by 2035

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