(MENAFN- KNN India)
New Delhi, Dec 21 (KNN)
India's government has launched an investigation into the alleged dumping of steel products, potentially leading to safeguard duties that could significantly impact the country's manufacturing sector.
The probe, initiated by the Directorate General of Trade Remedies (DGTR), focuses on various steel products including Hot Rolled coils, Cold Rolled coils, and Metallic Coated Steel products, which are essential materials across multiple industries.
The investigation comes in response to a complaint filed by the Indian Steel Association, representing major producers such as ArcelorMittal Nippon Steel, JSW Steel, and Steel Authority of India.
These manufacturers have cited a sudden surge in imports that they claim is causing serious injury to domestic industry. The DGTR has provided a 15-day window for stakeholders to submit their responses to the investigation.
The probe has raised concerns among user industries, particularly in the MSME sector, which forms the backbone of India's engineering exports.
Engineering Export Promotion Council Chairman Pankaj Chadha warns that implementing safeguard duties could increase raw material costs, potentially leading to higher imports of finished products and undermining export competitiveness.
This is particularly significant as MSMEs constitute 60 per cent of engineering goods exporters and contribute half of the sector's export value.
Commerce ministry officials have assured that MSME interests will be considered in determining safeguard duties. Recent discussions between user industries, producers, and ministry officials have explored various protective measures for MSMEs.
One proposal suggests providing steel to MSMEs at export prices, though representatives note that most small units lack the volume requirements to purchase directly from producers.
Steel producers justify their concerns by pointing to substantial excess capacity in China, Japan, and South Korea.
They highlight China's shifting production patterns, where reduced domestic demand for long steel products has led manufacturers to increase flat product exports.
Additionally, they warn of growing production capacity in ASEAN countries, largely driven by Chinese investments, which could potentially target the Indian market.
The case underscores the delicate balance between protecting domestic steel producers and maintaining the competitiveness of downstream industries, particularly the vital MSME sector that significantly contributes to India's export economy.
(KNN Bureau)
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