The interim budget must construct a strong gate to prevent the dumping of steel and keep China out.

India saw an unprecedented influx of steel, reaching an all-time high of 1.2 million tonnes in November, despite its advocacy for localization. This surge in imports coincided with a global trend of declining steel demand. According to CRISIL, imports will rise even more this fiscal year, potentially reaching 6 million tonnes. Crisil reports that although the demand for steel has decreased globally, demand growth in India has defied this trend, rising by 13%.

India supports localization, but domestic steel producers are concerned about the increase in steel imports, which come primarily from China and are routed through Vietnam.

The Indian Steel Association (ISA), which refers to the ongoing concerns about rising imports and raw material prices as "dumping of steel products" in the market, has brought attention to these issues.

As a result, domestic steel producers would like India to restrict entry for these goods, and they will be looking to the interim budget for assistance.

In order to reduce inflow surges, reports state that India has been considering safeguard measures similar to the quota system of the European Union. It will be important to keep an eye out for any announcement on those lines in the interim budget.

According to reports, India might also think about reexamining the lesser duty rule and enforcing import restrictions across ports.

The steel industry requested strict safeguard measures from the budget last year, such as increased import duties and the reinstatement of anti-dumping laws on a range of steel products.

The government is working on a revised Production Linked Incentive (PLI) scheme 2.0 for the steel sector, Minister of State (MoS) for Steel Faggan Singh Kulaste stated in a recent interview with PTI, underscoring the government's emphasis on supporting the sector and guaranteeing raw material availability.
The steel industry demands increased government capital expenditure to drive infrastructure development because India is the largest economy growing at the fastest rate and because 'Aatmanirbhar Bharat' is expected to result in significant infrastructure development and manufacturing capacity expansion. Steelmakers are also seeking increased budgetary allocations towards the PLI scheme in order to support the industry's growth trajectory.

The industry is anticipating more government support, so the pace of government capital expenditure is essential to long-term growth. It is expected that the impending interim budget will present policies aimed at tackling the difficulties encountered by the steel industry, striking a balance between strengthening domestic manufacturing and controlling the flood of imports.