Cheap Imports, Dumping by Global Players Pose Major Challenge to India’s Steel Sector: RBI Bulletin

During 2023-24 and 2024-25, the country's steel sector faces significant challenges due to cheap imports and dumping by major global steel producers. In an article published in the RBI's October bulletin, it stated that steel imports have increased due to lower international prices. India's steel imports increased by 22% in 2023-24. This increased import has adversely impacted domestic steel production. Therefore, policy support is needed to boost the competitiveness of domestic steel production.

The article, titled "Steel Under Siege: Understanding the Impact of Dumping on India," states that dumping of cheap steel from global producers can threaten domestic steel production. However, this can be mitigated through appropriate policy measures. The recent initiative to impose safeguard duties provides protection against steel import dumping.

India imports steel products to meet consumption demand. The country's iron and steel imports grew by 10.7 percent in the first half of 2024-25. However, they declined in the second half of 2024-25, primarily due to safeguard duties. India imports 45% of its steel from several countries, including South Korea and China.

India imports approximately 45% of its steel, with South Korea accounting for 14.6 percent and China accounting for 9.8 percent. Additionally, India imports 7.8% of its steel from the US, 7.1% from Japan, and 6.2% from the UK.

The article states that the gap between domestic consumption and production has widened since 2022. Steel imports from China, Japan, South Korea, Indonesia, and Vietnam have increased during 2024-25. Furthermore, India's steel consumption has grown at an average rate of 12.9% (average monthly growth rate) from April 2022 to November 2024. This article is based on monthly data from April 2013 to March 2025. The views expressed in the article are those of the authors and do not reflect those of the RBI.

Anirban Sanyal and Sanjay Singh, officials from the RBI's Statistics and Information Management Department, stated in the article that rising imports and competitive pricing have posed challenges, putting pressure on domestic producers. The pricing strategies of exporting countries remain a concern for the steel industry. A balanced approach is needed to address these challenges, including policy support and initiatives to enhance the competitiveness of India's steel production through innovation, cost efficiency, and sustainable practices.