ISSDA urges for level playing field for domestic stainless steel industry ahead of Budget 2022
New Delhi: Indian Stainless Steel Development Association (ISSDA), the apex organization representing the domestic stainless-steel industry, has urged the Government of India to restore Countervailing Duty (CVD) against dumped stainless steel imports from China and Indonesia. Making representation to the highest authorities, including the Finance Ministry and Ministry of Steel, ISSDA has made this plea ahead of the upcoming Union Budget in order to enable a level playing field for the Indian manufacturers and MSMEs.
In the representation, Mr KK Pahuja, President, ISSDA said, “Making strides across new applications, stainless steel has proved to be essential for the development and growth of our country. In alignment with the National Steel Policy 2017 vision, overall stainless steel capacity of the country need to be increased from 6 million tons to 9 million tons by the year 2030. Sadly, the total capacity utilization for the domestic stainless-steel industry stands at a mere 60%, under pressure of imports. Restoring Countervailing Duty (CVD) against subsidized and dumped stainless steel imports from China and Indonesia will create a healthy environment for Indian producers, especially MSMEs. This will not only support the Make in India vision, but will also help attract investment confidence to generate new employment as well as increase revenue. Additionally, favourable balance of trade will conserve foreign reserve.”
The gravity of the situation can be understood from the fact that by revoking the Trade remedial measures against China and Indonesia, stainless steel imports from these two countries into India during H1 FY22 increased by 172%. Moreover, Indonesia is set to replace India as the second largest stainless-steel producer in the world.
These countries have been proved to provide non- WTO complying subsidies and most stainless-steel producing nations have imposed anti-dumping/subsidy and safeguard mechanism against China and Indonesia. Even, China has imposed ADD measures on Indonesia. In Dec 2021, European Commission disclosed up to 34.3% CVD on Stainless Steel CR flat products from Indonesia. This will further nudge these countries to dump more in India as most of the stainless steel producing countries have protected their domestic producers. India is the only attractive and open market available to China & Indonesia.
Indian Stainless-steel supply ecosystem has a unique structure wherein 30% producers are operating in MSME sector. The domestic industry has sufficient capacity to meet the demand, however, unwarranted imports are hindering the industry to realize its true potential. Government policy support is necessary to not only reclaim India’s position as the world’s second largest stainless-steel producer, but also enable the next phase of industry growth in line with Prime Minister’s vision of Atamanirbhar India.