Indian Steel Industry Braces for Potential Import Surge Following US Tariffs
Naveen Jindal Voices Concerns over Import Diversion
The Indian steel industry is preparing for a potential influx of steel imports following the United States' decision to impose tariffs on steel and aluminum. Naveen Jindal, Chairman of Jindal Steel and Power Ltd., has cautioned that countries previously exporting to the US may now divert their shipments to India.
With the US implementing a 25% tariff on steel and aluminum imports, there's a growing concern that these nations will seek alternative markets, and India, with its robust domestic demand, could become a primary target.
Protecting Domestic Steel Producers
"The Indian steel industry must be protected from unfair exports into India," Jindal stated at the Global Business Summit. He highlighted the need for vigilance against potential dumping of steel products in the Indian market.
The Indian Steel Association has already taken steps to address this issue by filing an application with the Directorate General of Trade Remedies (DGTR), which is currently under review. The association hopes that DGTR takes steps to curb the potential damage to the sector.
Impact of Increased Imports
Indian steelmakers have consistently raised concerns about the dumping of steel in the Indian market from certain countries, which negatively affects their competitiveness. An increase in imports could further exacerbate this issue.
India's Steel Trade Dynamics
Official data reveals a contraction in India's steel exports by 28.9%, falling to 3.99 million tonnes during the April-January period of fiscal year 2025. This is compared to 5.61 million tonnes in the same period of the previous fiscal year.
Furthermore, India remained a net importer of steel, with inbound shipments rising over 20% to 8.29 million tonnes during the April-January period of the current fiscal year.
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