Limiting low-cost steel imports from China will hurt MSMEs in India: EEPC
As the government considers imposing additional duties to curb the influx of cheaper steel imports, which are impacting domestic producers, the Engineering Export Promotion Council of India (EEPC India) as well as steel producer Jindal Steel have voiced their concerns about the potential effects of these protectionist measures.
EEPC India, the organisation advocating for engineering goods exporters, is against limiting steel imports from cost-effective markets. According to the council, curbing steel imports from China will severely impact the engineering goods sector, especially MSMEs, which depend on competitively priced steel to sustain operations. “It is imperative to keep domestic steel prices competitive. The price differential between Chinese steel and Indian-produced steel is significant. This price advantage enables downstream industries, especially MSMEs, to remain competitive in domestic and global markets,” says Arun Kumar Garodia, Chairman of EEPC India.
Several small firms are into producing steel-based engineering goods. As MSMEs contribute around 30% to India's GDP, any move that impacts these small firms would hurt economic growth, say stakeholders.
The latest data from the Joint Plant Committee (JPC) shows a marked increase in steel imports from several key markets. Imports of finished steel from China have risen by 31.7%, from Japan 130%, and from Vietnam and Korea 52% and 6%, respectively.
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