Indian steel firms call for more duties on imports

Imports and Exports | | MIC Customs Solutions |

The Indian government should place higher duties on imports of steel, four major metal companies have insisted.

Some of the major steel companies in India have called on the nation's government to impose higher import duties on the metal amid concerns that current market conditions will wipe out profits.

According to Reuters, JSW Steel Ltd, Tata Steel Ltd, state-owned Steel Authority of India Ltd and Jindal Steel and Power Ltd have all approached the federal ministry to complain that other Asian countries are dumping their own low-cost steel into the Indian market because of a global economic slowdown.

As a result, they want to see higher duties imposed to prevent this and ensure Indian steel remains competitive.

It has been suggested that some measures may be taken by the government to act on the issue, although these are likely to be non-tariff measures, sources say.

India has already been involved in a recent trade dispute over steel, with the World Trade Organization ruling in Japan's favour that New Delhi had unfairly imposed import duties on steel in 2016.

According to government data, imports of steel into India increased by around eight per cent between April and December 2018 when compared to the same period a year earlier.

However, exports of the metal fell by more than 17 per cent after the US imposed additional duties on steel coming from Asia. This has made India a net importer of steel.