Interim budget needs to build a sturdy gate to curb steel dumping, keep China away

Amidst soaring steel imports hitting record highs, India's steel industry braces for the upcoming interim budget's potential support. The surge, primarily from China via Vietnam, sparks concerns among local steel producers.

Anticipated safeguard measures and the revamped PLI scheme 2.0 highlight the sector's expectations for government intervention.

India, despite its advocacy for localisation, witnessed an unprecedented influx of steel, hitting an all-time high of 1.2 million tonnes in November, marking a surge in imports amidst a global trend of subdued steel demand. CRISIL projects imports to escalate further, possibly touching the 6 million tonnes mark this fiscal year. Global steel demand has been subdued but demand growth in India has bucked that trend to rise 13%, according to Crisil.The surge in steel imports, predominantly from China and routed through Vietnam, raises apprehensions for domestic steel producers while India advocates for localisation.The

 (ISA) has flagged the persisting worries of escalating imports and soaring raw material prices, terming it as "dumping of steel products" in the market.

The domestic steel makers would thus want India to narrow the entry gate of these products and they will be eying the interim budget for support.