The Indian government is actively working to strengthen the domestic steel industry through a series of protective measures and strategic initiatives. Information from a ministry official indicates that the government has taken several steps to safeguard the local industry.
These actions include the imposition of safeguard and anti-dumping duties on flat steel products imported from countries such as China and Vietnam. The aim is to create a more level playing field for domestic producers.
Boosting Production and Raw Material Supply
To promote high-quality finished steel, the ministry has introduced a Production Linked Incentive (PLI) scheme. This scheme provides financial incentives for manufacturing high-grade and specialized steel. These advanced materials are crucial for sectors like defense, power supply, renewable energy, automobiles, and aviation, supporting critical industries within the country.
A significant focus is also being placed on ensuring the robust availability of raw materials. Authorities are exploring new coking coal reserves and engaging in discussions with resource-rich nations to diversify supply chains. Furthermore, iron ore auctions are currently underway, with steel manufacturers actively encouraged to participate to secure essential resources.
Industry Outlook and Challenges
Naveen Jindal, Chairman of Jindal Steel and President of the Indian Steel Association, acknowledged India’s progress but emphasized the need for faster implementation. He highlighted that the path forward requires continuous demand generation, stable policies, and bold investments from the industry.
Industry body ASSOCHAM noted the crucial support provided by the government. However, they also pointed out persistent challenges, including rising coking coal costs, high logistics expenses, limited availability of railway rakes, and broader infrastructure bottlenecks. ASSOCHAM anticipates an increase in steel demand in the new year and expects that quality control orders are unlikely to see further relaxation.
