Government Acts on Rising Steel Imports: Minister Kumaraswamy Responds to Industry Concerns

The Indian government is actively addressing concerns related to rising steel imports, particularly substandard materials, according to Union Steel Minister H D Kumaraswamy. Speaking at FICCI’s Conference on ‘Electric Vehicles Accelerating E-mobility: Enablers and Imperative,’ Kumaraswamy confirmed that the ministry is aware of the issue and is working on solutions to curb the impact on domestic players.

Indian steel producers have voiced concerns over the surge in cheap imports, primarily from China and Vietnam, which are undermining local competitiveness. In the first half of FY25, steel imports rose by almost 50% compared to the previous year, with China being the dominant source. According to BigMint CEO Dhruv Goel, this increase is largely due to China’s slowing domestic demand, driving its exports to their highest level in eight years. China’s steel exports are expected to exceed 100 million tonnes in 2024.

Vietnam has also contributed significantly to the rise in imports, taking advantage of the free trade agreement with India that exempts it from import duties. The data reveals that steel imports into India reached 5.51 million tonnes (MnT) during April-September 2024-25, up from 3.66 MnT in the same period of the previous year. Imports from China alone surged to 1.85 MnT, compared to 1.02 MnT during April-September 2023-24.

Domestic steel players have called for stronger measures to address these concerns, particularly with the rising volume of substandard materials entering the market. The government’s intervention aims to protect the domestic industry while ensuring the quality of imported steel.

This increase in imports and the growing concerns among steel manufacturers signal a potential shift in India’s steel trade policies. The government’s response will be crucial in balancing the needs of the domestic industry with global trade dynamics.