India could explore policy measures such as anti-dumping duties, safeguard measures apart from stricter quality control measures to curb rising imports, says HD Kumaraswamy, the Union Minister for Steel and Heavy Industries.
Speeding up PLI investments towards driving speciality steel-making, tapping into new export markets to counter trade barriers being mulled by Europe, while ensuring raw material and supply chain security for domestic-steel makers feature prominently on the Ministry’s radar.
Kumaraswamy is also keen to push and incentivise green steel-making in the country.
In an exclusive interview to businessline, he talks about import curbs, handholding domestic steel industry in times of trouble, taking up trade concerns with Europe and other multilateral organistions, while ensuring a 12-13 per cent growth in domestic steel demand growth.
Import of steel continues to be high. Is there a policy intervention on?
We are closely monitoring steel imports, especially from countries with which India has Free Trade Agreements (FTAs). Policy measures such as anti-dumping duties, safeguard measures, and stricter quality controls to curb excessive imports are being explored to protect domestic industry.
To further strengthen domestic capabilities, we are also reviewing the Production Linked Incentive (PLI) scheme to attract investments in value-added and speciality steel. These interventions will be aligned with WTO guidelines ensuring fair competition while promoting indigenous production.
European nations are probing exports including those coming from India. How is this being dealt with?
Trade barriers and protectionist measures are always a challenge. The Ministry is closely engaging with its European counterparts and multilateral organisations to ensure a fair and transparent trading environment. We are advocating for adherence to WTO norms and addressing concerns through diplomatic channels.
India is also focusing on diversifying export markets to reduce dependence on Europe. Enhanced trade ties with ASEAN, Middle East, and African nations are being explored.
Additionally, we are supporting exporters by streamlining trade policies and offering incentives under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme.
The World Steel Association suggests low demand and supply excesses. Moreover, Trump coming to power is seen as a concern which could lead to high steel dumping here. And possible measures to address these concerns?
The global steel market is undoubtedly under pressure due to supply excesses in China and subdued demand. To mitigate risk of cheap imports, including potential dumping from China, the Ministry has intensified monitoring. We are (also) exploring options to impose countervailing and anti-dumping duties where necessary.
Domestically, we are encouraging steel manufacturers to explore high-value applications (offerings) and diversify the product portfolio to stay competitive.
Additionally, the government is ensuring raw material security for steel-makers, and also take initiatives to increase production of iron ore by NMDC (in order) to stabilise prices.
There are ongoing dialogue with industry to ensure fair domestic pricing and safeguard consumer interests.
In this context, PLI 1.0 – aimed at improving high value steel production in India -saw slow off-take. Your take.
The Ministry with some amendments to promote manufacturing of speciality steel and import substitution has brought PLI 1.1 for remaining amount of ₹4,322 crore. In addition, we are providing technical support to participating companies and encouraging collaborations with global leaders in speciality steel manufacturing.
Will there be a thrust to push private cap-ex for green steel-making?
The Green Steel Mission is a key priority for the Ministry, and it aligned with India’s net-zero carbon emission goals by 2070. We are the first country to define green steel and introduce rating systems.
Now we are promoting research and development in green steel with three pilot projects being underway; and the use of green hydrogen is also being promoted.
To attract private investments, the Ministry is offering fiscal incentives such as tax benefits and subsidies on green technologies. We are also exploring partnerships with global organisations and multilateral agencies to access green funds and technical expertise.
But, will the slump in steel prices not impact cap-ex of CPSEs, like SAIL, NMDC, and NMDC Steel?
While fluctuations in steel prices are a concern, the Ministry remains committed to its long-term vision of capacity expansion and modernization of public sector enterprises like SAIL and NMDC. These investments are crucial to achieving the goals of the National Steel Policy and ensuring self-reliance.
However, we are prioritising projects based on strategic importance and financial viability. Cost optimization and efficiency improvement measures are being implemented across these organisations to mitigate the impact of price volatility.
The Ministry is confident that global and domestic demand recovery will support these capex plans in the medium to long term.
In the backdrop of these concerns, what sort of steel demand growth is being forecasted?
The Ministry anticipates robust growth in steel demand during FY25 driven by expansion of infrastructure and manufacturing sectors under ‘Make in India’ and ‘Aatmanirbhar Bharat’. The National Steel Policy 2017 targets 300 million tonnes (MT) of production capacity by 2030-31, and we expect annual demand growth to hover between 12 and 13 per cent.
Urbanization and rural infra projects will further fuel demand. Additionally, the Ministry is working on ensuring a balanced supply chain and addressing bottlenecks to sustain this momentum.
Published on January 26, 2025