Govt Steps Up Support For Steel Sector With New Policies & Import Controls

(MENAFN- KNN India) New Delhi, Aug 6 (KNN) In a written statement to the Lok Sabha, Minister of Steel and Heavy Industries H.D. Kumaraswamy outlined key developments and ongoing initiatives aimed at increasing the sector's global competitiveness while reducing dependence on imports.

India, which holds the position of the world's second-largest steel producer, registered crude steel production of 152.18 million tonnes (MT) in FY 2024–25-marking a 5.5 percent rise over the previous year.

Finished steel consumption reached 152.13 MT, up by 11.6 percent, propelled by robust infrastructure growth and urbanisation.

During the same period, finished steel production totalled 146.69 MT, with exports accounting for 4.86 MT.

Although the steel sector remains deregulated-with companies independently determining trade strategies based on market dynamics-the government plays a facilitative role in shaping a policy environment that supports long-term sectoral growth.

Central to this effort is the National Steel Policy, 2017, which aims to expand crude steel capacity to 300 MT and achieve production of 255 MT by 2030.

To strengthen domestic capabilities and reduce import reliance, the government has implemented several targeted interventions.

The Domestically Manufactured Iron & Steel Products (DMI&SP) Policy mandates the use of Indian steel in government procurement, while the Production Linked Incentive (PLI) Scheme for Specialty Steel seeks to boost domestic manufacturing of high-grade steel and attract investment.

Complementing these initiatives are Steel Quality Control Orders that prohibit the import or sale of substandard products, thereby safeguarding quality standards in the domestic market.

To protect domestic manufacturers fr0m unfair trade practices, the government has imposed anti-dumping duties on select steel products fr0m countries such as China, Korea, Japan, Singapore, Vietnam, and Thailand.

Countervailing duties have also been levied on welded stainless steel pipes and tubes fr0m China and Vietnam. In a more recent move, a provisional safeguard duty of 12 percent has been introduced on certain flat steel imports for a period of 200 days.

An important regulatory advancement came with the launch of SIMS 2.0-the revamped Steel Import Monitoring System-on July 25, 2024.

The upgraded platform offers real-time, granular data on import trends to aid policymaking and respond to industry concerns more effectively.

(KNN Bureau)

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