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The Indian government has imposed anti-dumping duty on certain types of cold rolled steel coming from China for 5 years. Its purpose is to save the domestic steel industry from losses caused by cheap Chinese imports. This decision will provide relief to Indian steel companies, while steel imported from China will become expensive. However, the cost of transformer and motor manufacturing industry may increase slightly.
New Delhi. The Indian government has taken strict action on some types of cold rolled steel imported from China. The government has decided to impose anti-dumping duty on cold rolled non-oriented electrical steel for 5 years. This is the same steel which is used in transformers, electric motors and power equipment.
The Finance Ministry has taken this decision on the basis of the recommendations of DGTR. The amount of duty has been kept different according to the company, which ranges from about $ 223.8 per ton to $ 414.9 per ton. The government believes that this will create balance in the domestic steel market.
Cheap imports from China had increased the problem
In the last few years, cold rolled electrical steel coming to India from China had increased rapidly. This steel was being sold in the Indian market at a very low price, which was considered dumping. Due to this, Indian companies not only suffered loss in prices but also affected their market share and production.
DGTR’s investigation revealed that due to this cheap import, there was direct pressure on domestic steel makers. The report said that if timely action is not taken, it could have a long-term impact on both industry and employment.
How will Indian steel companies get relief?
After this duty, the price of Chinese steel will increase in India. This will provide some relief to domestic companies in price competition and they will be able to utilize their capacity in a better way. This decision is being considered positive for companies like Jindal Steel, Tata Steel and JSW Steel. The government believes that this step will strengthen Make in India and increase India’s self-reliance in special segments like electrical steel.
Which sectors will be affected?
This decision will also affect companies manufacturing electrical equipment. Raw materials may be a bit expensive for the industry manufacturing transformers, motors and power devices. However, the government argues that in the long term, a strong domestic supply chain will stabilize costs.
The government has made it clear that this decision has been taken under WTO rules and many countries of the world have already taken such steps on China’s steel imports. Overall, this step is being considered a big step towards protecting India’s steel industry from cheap imports and supporting domestic manufacturing.
