Business: The country’s steel sector faces huge challenges during 2023-24 and 2024-25 due to cheap imports and dumping by major global steel producers. In an article published in the October Bulletin, RBI said, an increase in steel imports has been observed due to low prices in the international market. India’s steel imports recorded a growth of 22 percent in 2023-24. This increase in imports has adversely affected domestic steel production. In such a situation, policy support is needed to boost the competitiveness of domestic steel production.

Dumping of cheap steel from global producers could threaten domestic steel production, the article titled Steel Under Siege: Understanding the Impact of Dumping on India said. However, this can be reduced with appropriate policy measures. The recent initiative to impose safeguard duty provides protection against steel import dumping.

ban on safeguard duty
India imported steel products to meet consumption demand. The country’s iron and steel imports increased by 10.7 percent in the first half of 2024-25. At the same time, a decrease was recorded in the second half of 2024-25, the main reason for which was safeguard duty. India imports 45% of steel from many countries including South Korea and China.

Imports increase rapidly in 2024-25
India imports about 45 percent of steel. In this, South Korea’s share is 14.6 percent and China’s share is 9.8 percent. Apart from this, India imports 7.8 percent steel from America, 7.1 percent from Japan and 6.2 percent from Britain.

The article states that the gap between domestic consumption and production has increased from 2022. Steel imports from China, Japan, South Korea, Indonesia and Vietnam are projected to increase during 2024-25. Moreover, India’s steel consumption is expected to grow at an average rate of 12.9 per cent (average monthly growth rate) from April 2022 to November 2024. This article is based on monthly data from April, 2013 to March, 2025. The views expressed in the article are those of the authors and do not reflect those of RBI.

The pricing policies of exporting countries are worrying.
Anirban Sanyal and Sanjay Singh, officials of the RBI’s Statistics and Information Management Department, said in the article that challenges have been faced due to increasing imports and competitive pricing. This has increased pressure on domestic producers. Pricing strategies of exporting countries remain a matter of concern for the steel industry. A balanced approach is needed to deal with these challenges. This includes policy support and initiatives to enhance the competitiveness of India’s steel production through innovation, cost efficiency and sustainable practices.