India cannot be dumping destination for excess steel: Secretary General, Indian Steel Association

Dethroning many global economies to become the second-largest steel producer in 2018, the Indian steel industry has come a long way. From a mere 1.1 million tons (MT) production in 1951, India's finished steel output increased to 121.29 MT in 2023. This is no mean achievement by any yardstick.The guaranteed potential is enormous. The industry is currently on course to attain the coveted 300 MT crude steel production capacity target by FY31 from around 164 MT at present. Existing and new players are investing further to get a pie of the gripping story unfolding around India, the lone bright spot in today's global economy galore with headwinds. Foreign companies have also made India their destination of choice. Many are in the pipeline.

And why not? India is blessed with the best quality iron ore, an incredibly supportive government, a conducive atmosphere for doing business, and overtly positive investors amidst a growing demand from 140 billion aspiring consumers. India is an investors' delight.

While nothing can stop India's onward journey, growing imports may dampen the steel sector prospects if not tackled early. We must rein in the burgeoning imports to avoid a situation like 2014-15. Dumping at predatory prices by global players with excess capacity had sent the Indian steel industry into a tizzy. The unprecedented rise in imports by 75% and 25% in 2014-15 and 2015-16, respectively, caused a rippling effect, resulting in a sharp decline in domestic prices and a lower sales realization for steel producers. The price fall led to a cash deficit, which they met through borrowings from banks and the debt market at a much higher interest rate.