The Indian steel industry in a statement on January 26 called for tariff protection in the national budget to be submitted to the Indian Parliament on February 1 against the import of steel products at "predatory prices".
Among the measures envisaged by the government in the 2023-2024 budget, there is an increase of 7.5% in basic customs duty, up to 12.5% for flat products and 10% for long products.
In addition, a 25% compensation tax is required on all steel imports to avoid unloading of products in the country by foreign sellers. Pressure for higher tariff protection follows India as a net importer of steel in Q3 (October-December) of Fiscal year 2022-2023, with domestic supply increasing 65% year-on-year.
However, some industry analysts said that the country's shift to net steel imports is a result of the sharp decline in exports, particularly as a result of the 15% export tax imposed by the government in May 2022 and then canceled in November 2022. Citing official data from the Ministry of Steel, analysts said this was reflected in a 65% decline in steel exports between April and November 2022.