Updated: Oct 30, 2024 03:47:53pm
EEPC India Opposes Protectionist Measures On Low-Cost Steel Imports
New Delhi, Oct 30 (KNN) The Engineering Export Promotion Council of India (EEPC India) has taken a firm stance against proposed protectionist measures on low-cost steel imports, particularly emphasising the potential impact on Micro, Small, and Medium Enterprises (MSMEs).
EEPC India Chairman Arun Kumar Garodia emphasises the critical nature of maintaining competitive steel pricing, noting the significant price advantage that Chinese steel currently offers to downstream industries.
Recent data from the Joint Plant Committee (JPC) reveals substantial increases in finished steel imports across multiple markets.
Chinese imports have grown by 31.7 per cent, while imports from Japan have surged by 130 per cent.
Vietnam and Korea have also shown significant increases at 52 per cent and 6 per cent respectively, prompting industry experts to call for a closer examination of Free Trade Agreement (FTA) rules of origin criteria.
The import surge coincides with a notable domestic supply-demand gap. Despite India’s crude steel production rising by 4.44 per cent and finished steel production increasing by 5.30 per cent in the initial five months of FY 2024-25, consumption has grown at a more rapid pace of 13.78 per cent.
This disparity has created a complex market dynamic requiring careful policy consideration.
Industry stakeholders are particularly concerned about the potential economic implications, given that MSMEs contribute approximately 30 per cent to India’s GDP.
The EEPC has cautioned that implementing additional duties or safeguard measures could adversely affect steel prices, potentially compromising the operational viability of numerous small-scale manufacturers and impacting overall economic growth.
(KNN Bureau)