In a stark warning about the growing influx of steel imports, Tata Steel CEO T V Narendran has expressed deep concerns regarding India’s steel trade dynamics. The country, previously a net exporter of steel, has witnessed a staggering 38% surge in imports, reaching 8.319 million tonnes in the fiscal year 2023-24.
Narendran emphasized the need for vigilance and caution, stating, “It would be a pity if the situation continues in the long run. We have to be watchful about imports.” His remarks come amidst mounting apprehensions within the industry over the adverse impacts of heightened imports.
Data provided by BigMint, formerly known as SteelMint, revealed a contrasting picture of India’s steel sector. While the nation’s crude steel production surged by 14% to 144 million tonnes in FY24 from 126 MT in FY23, the consumption of finished steel witnessed a notable increase as well, standing at 136 MT, up by 13% over the previous year’s 120 MT.
Despite the positive growth indicators, concerns loom large over the sustainability of India’s steel industry amidst the surge in imports. Narendran remains cautiously optimistic about the future, anticipating an 8–10% increase in steel consumption for the fiscal year 2024-25.
Responding to inquiries about addressing the issue, Narendran hinted at the complexities surrounding the review of free trade agreements (FTAs), suggesting that it’s a decision for the government to make. He acknowledged the challenges associated with such a review, indicating potential hurdles in implementing regulatory measures to curb imports.
The rising tide of steel imports, particularly from countries like China, has prompted steelmakers to sound the alarm bells and call for government intervention. Domestic players are increasingly advocating for an end to imports and a thorough review of FTAs with various nations.
As the debate intensifies and concerns over the sustainability of India’s steel industry grow, stakeholders are under pressure to devise effective strategies to balance domestic production with imports, safeguarding the interests of the nation’s steel sector in the long run.
