Executive Summary:
This document addresses low-priced steel imports' impact on the domestic steel industry. It outlines measures taken by the Indian government to reduce import dependence, particularly from China, and to address raw material shortages. Key initiatives include the PLI Scheme for Specialty Steel, SIMS 2.0, and the DMISP Policy. A provisional safeguard duty was imposed on certain steel flat products effective April 21, 2025.
Key Points / Main Content:
Addressing Steel Imports:
* Steel prices are determined by market forces.
* Production Linked Incentive (PLI) Scheme: Promotes domestic manufacturing of Specialty Steel to reduce imports.
* Steel Import Monitoring System (SIMS) 2.0: Enhances import monitoring for the domestic steel industry (launched July 25, 2024).
* Domestically Manufactured Iron & Steel Products (DMISP) Policy: Promotes "Made in India" steel for government procurement.
* Anti-Dumping Duty (ADD): In place for specific steel products from China PR, Korea RP, Japan, Singapore, Vietnam, and Thailand.
* Countervailing Duty (CVD): Applied to welded stainless steel pipes and tubes from China and Vietnam.
* Safeguard Duty: A provisional 12% ad valorem safeguard duty on certain non-alloy and alloy steel flat products, effective April 21, 2025, for 200 days.
Raw Material Supply:
* Sufficient iron ore reserves exist in India to meet domestic demand.
* Iron ore production in FY 2025 was approximately 289 million tons; exports were about 23 million tons, and imports were 6.4 million tons.
* Mining and Mineral Policy reforms aim to enhance production through measures like early auction of mines, eased business operations, and incentivizing mining operations.
* Captive mines can sell up to 50% of minerals produced.
Steel Scrap Recycling:
* Steel Scrap Recycling Policy (November 2019): Provides a framework to promote metal scrapping centers for scientific processing and recycling of ferrous scrap.
Import Volumes:
* Finished steel import volumes (in '000 tonnes) are detailed for each financial year from 2014-15 (9,320) to 2024-25 (9,551).
Impact Analysis:
Domestic Steel Industry:
* Impact: Benefits from reduced import competition, increased government procurement of locally manufactured steel, and a more stable raw material supply.
* Action Required: Adapt to the new policy environment, including utilizing the PLI scheme, complying with SIMS 2.0, and preparing for increased government procurement opportunities.
Steel Importers:
* Impact: May face increased costs due to ADD, CVD, and safeguard duties; require adherence to SIMS 2.0.
* Action Required: Monitor and comply with import regulations, adjust sourcing strategies to account for duties, and register with SIMS 2.0.
Government:
* Impact: Responsible for implementing and monitoring the effectiveness of the policies and schemes.
* Action Required: Ensure effective implementation of PLI scheme, SIMS 2.0, DMISP policy, and continuously monitor the steel market to adjust policies as needed.
Mining Industry:
* Impact: Potential for increased production and revenue through policy reforms and incentives.
* Action Required: Capitalize on policy reforms to increase production, participate in mine auctions, and comply with new regulations.
Key Entities Referenced
SHRI IMRAN MASOOD: Member of LOK SABHA who raised the unstarred question.
SHRI H.D. KUMARASWAMY: Minister of STEEL, responsible for answering the parliamentary question.
Production Linked Incentive PLI Scheme for Specialty Steel: Government initiative to promote domestic manufacturing of 'Specialty Steel' and reduce imports.
Steel Import Monitoring System SIMS: System revamped to monitor steel imports and address concerns of the domestic steel industry.
Domestically Manufactured Iron Steel Products DMISP Policy: Policy promoting the procurement of 'Made in India' steel by the government.
China PR: Country from which anti-dumping duties (ADD) and CounterVailing Duty (CVD) measures are imposed on certain steel products.
Steel Scrap Recycling Policy: Policy notified in November 2019 to promote the establishment of metal scrapping centers in India.
Korea RP: Country from which anti-dumping duties (ADD) are imposed on electrogalvanized steel.
GOVERNMENT OF INDIA
MINISTRY OF STEEL
LOK SABHA
UNSTARRED QUESTION NO. 3688
FOR ANSWER ON 12.08.2025
IMPACT OF LOW PRICED STEEL IMPORTS ON DOMESTIC STEEL INDUSTRY
3688. SHRI IMRAN MASOOD:
Will the Minister of STEEL be pleased to state:
(a) the measures taken to mitigate the impact of low priced steel imports on the
domestic steel industry;
(b) the manner in which the Government is addressing the issue of raw material
shortage and advocating for policies to promote securing new iron ore sources and
steel recycling;
(c) the quantity of steel imported from various countries since 2014, year-wise; and
(d) the steps taken to reduce dependence on steel imports especially from China?
ANSWER
THE MINISTER OF STEEL (SHRI H.D. KUMARASWAMY)
(a)to(d): Steel is a deregulated sector and steel prices are determined by demand
supply dynamics of market forces, global market conditions, trends in price of raw
materials, logistics cost etc. Government has taken following steps to reduce
dependence on Steel imports especially from China:-
(i) Launch of the Production Linked Incentive (PLI) Scheme for Specialty Steel
to promote the manufacturing of 'Specialty Steel' within the country and reduce
imports by attracting capital investments.
(ii) Steel Import Monitoring System (SIMS) has been revamped and SIMS 2.0
was launched on 25.07.2024 for more effective monitoring of imports to
address the concerns of domestic steel industry.
(iii) Implementation of Domestically Manufactured Iron & Steel Products
(DMI&SP) Policy for promoting ‘Made in India’ steel for Government
procurement.
(iv) Anti Dumping Duty (ADD) measures pertaining to some steel products like
seamless tubes, pipes and hollow profiles of iron, alloy, or non-alloy steel
(other than cast iron and stainless steel) (from China PR), electro-galvanized
steel (from Korea RP, Japan, Singapore), stainless-steel seamless tubes and
pipes (from China PR), welded stainless steel pipes and tubes (from Vietnam
and Thailand) are in place currently.
Contd…..2/-: 2 :
(v) Counter-Vailing Duty (CVD) is in place for Welded Stainless Steel Pipes and
Tubes from China and Vietnam.
(vi) Imposition of a provisional safeguard duty at the rate of 12% (twelve percent)
ad valorem for 200 days on imports of certain Non-Alloy and Alloy Steel Flat
Products w.e.f. 21st April, 2025.
The details of imports of finished steel since 2014-15 are at Annexure.
There is sufficient reserve of iron ore in the country to meet the current
demand/consumption by domestic steel industry. The production of Iron Ore in FY
2025 was around 289 Million tons and the export were approximately 23 Million tons
while the import was 6.4 Million tons, as per the data provided by IBM and DGFT.
The Government has taken various steps to increase supply of raw materials,
which include, inter-alia, Mining and Mineral Policy reforms to ensure enhanced
production, early auction & operationalization of mines with expired leases, ease of
doing business, seamless transfer of all valid rights & approvals, incentivizing for
starting of mining operation & dispatch, transferring of mining leases, allowing captive
mines to sell upto 50% of the minerals produced, enhancing the exploration activities
etc.
Government has notified the Steel Scrap Recycling Policy in November, 2019.
The policy provides a framework to facilitate and promote establishment of metal
scrapping centres in India for scientific processing and recycling of ferrous scrap
generated from various sources.
*****Annexure
Financial Year Import of finished steel in '000 tonnes
2014-15 9,320
2015-16 11,712
2016-17 7,224
2017-18 7,483
2018-19 7,835
2019-20 6,768
2020-21 4,752
2021-22 4,669
2022-23 6,022
2023-24 8,320
2024-25 9,551