Steel Imports Hit New Peak: India’s Trade Balancing Act

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Steel Imports Hit New Peak: India’s Trade Balancing Act

Business 04 Mar 2025 01:50 PM IST Economic Times

Record Surge: India’s finished steel imports from South Korea, China, and Japan hit an all-time high in April-January, raising concerns for domestic producers.
Industry Impact: The influx of cheaper imports puts pressure on Indian steelmakers, affecting local production and pricing.
Policy Considerations: The Indian government may need to explore trade measures or incentives to support domestic manufacturers and ensure a balanced market.

India's finished steel imports from South Korea, China, and Japan surged to a record high in the April-January period of FY 2024, highlighting rising concerns among domestic producers over increased competition. According to industry data, the surge in imports is driven by competitive pricing and free trade agreements (FTAs) that allow duty-free steel inflow from these countries.

South Korea remained the largest exporter of finished steel to India, benefiting from the India-South Korea Comprehensive Economic Partnership Agreement (CEPA). Meanwhile, Chinese steel imports also saw a sharp uptick due to lower domestic demand in China, leading its producers to push exports aggressively. Japan, another key supplier, leveraged its trade agreement with India to strengthen its steel exports.

The influx of imported steel has intensified pressure on Indian steelmakers, who have urged the government to take protective measures, such as imposing tariffs or tightening regulations on imports. Industry experts warn that sustained high imports could impact domestic production and pricing, especially as India aims to boost its self-reliance in steel manufacturing.

Despite the rise in imports, domestic steel demand remains strong, driven by infrastructure projects and construction activities. However, Indian steel producers are now pushing for policy interventions to level the playing field against cheaper imports. The government is reportedly reviewing the situation and may introduce measures to safeguard domestic steelmakers while balancing trade commitments.

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