India Extends Anti-Subsidy Duty On Steel Imports From China, Vietnam

9/12/2024 5:08:12 AM

(MENAFN- KNN India) New Delhi, Sep 12 (KNN) The Indian government has announced a five-year extension of anti-subsidy duties on imports of welded stainless steel pipes and tubes from China and Vietnam.

This measure, originally implemented in September 2019, aims to protect domestic manufacturers from subsidized imports, according to a recent notification from the finance ministry.

The decision follows an anti-dumping investigation conducted by the Directorate General of Trade Remedies (DGTR).

The probe, initiated after complaints from industry associations, found evidence that these products were being exported to India at prices below production costs due to subsidies.

TV Narendran, MD & CEO of Tata Steel, commented on the broader issue at the AIMA National Management Convention, stating, "The big problem is China is selling steel at prices at which they are losing money, impacting the global industry."

While the extended duty is expected to increase import costs, officials have assured that it will not significantly affect product availability in the Indian market.

The move is part of a series of measures being considered to support domestic steel production.

Union Steel Minister H.D. Kumaraswamy recently proposed increasing steel import duties from 7.5 per cent to 10-12 per cent, while Commerce and Industry Minister Piyush Goyal suggested discussions on a border adjustment tax to promote sustainable manufacturing.

However, the government's protective stance contrasts with calls from some industry leaders to ease foreign direct investment (FDI) restrictions, particularly those affecting Chinese investments.

Since 2020, India has required prior government approval for FDI from countries sharing a land border, including China. Sources indicate internal disagreements within the government regarding potential changes to this policy.

(KNN Bureau)

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