India To Develop High-Grade Auto Steel To Reduce Import Dependence: Minister Kumaraswamy

India's steel industry is preparing to develop specialised high-grade steel for automobile components in an effort to cut dependence on imports, Union Minister for Steel and Heavy Industries HD Kumaraswamy said at a conference on Thursday.

Speaking at the annual convention of the Society of Indian Automobile Manufacturers (SIAM), Kumaraswamy said that India has long relied on imports of high-grade steel, which is vital for the automotive sector as well as defence and other strategic industries.

With large-scale infrastructure and industrial projects underway across India, demand for this specialised steel is expected to rise significantly.

The minister also highlighted the developments around the Production-Linked Incentive (PLI) scheme for the automobile sector. As of March 2025, companies participating in the scheme had invested ₹29,576 crore in capital, including new production facilities and advanced technologies.

Kumaraswamy emphasized that while the government can provide enabling policies and incentives, it is ultimately the responsibility of industry players, research institutions, and startups to drive innovation and bring new technologies to the market.

Safeguarding India's Steel Imports

Cheap imports from China have put Indian steelmakers under pressure. To counter that, India's Commerce Ministry, through its Directorate General of Trade Remedies (DGTR), recommended a three-year safeguard duty on imports of certain flat steel products last month.

The recommendation was triggered by a complaint from the Indian Steel Association (ISA), which flagged the sharp rise in inbound shipments and the pressure on Indian producers.

In April, India imposed a temporary 12% safeguard duty on certain steel imports to counter a surge in cheap shipments, mainly from China.

Stocks Watch

Auto parts companies like Sona BLW (-2.4%), Tube Investments (-0.6%), Samvardhana Motherson (-0.1%), and Bosch (-0.5%) edged lower, while Uno Minda (+0.77%), Timken (+0.3%), and Sansera Engineering (+0.1%) were trading in the green.

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