Indian Stainless Steel Development Association (ISSDA), the apex organization representing the domestic stainless-steel industry, has urged the Government of India (GOI) to restore Countervailing Duty (CVD) against dumped stainless steel imports from China and Indonesia. Making representation to the highest authorities, including the Finance Ministry and Ministry of Steel, ISSDA has made this plea ahead of the upcoming Union Budget to enable a level playing field for the Indian manufacturers and MSMEs.
In the representation, Mr KK Pahuja, President, ISSDA said, “Making strides across new applications, stainless steel has proved to be essential for the development and growth of our country. In alignment with the National Steel Policy 2017 vision, the overall stainless steel capacity of the country needs to be increased from 6 million tons to 9 million tons by the year 2030. Sadly, the total capacity utilization for the domestic stainless-steel industry stands at a mere 60%, under the pressure of imports. Restoring Countervailing Duty (CVD) against subsidized and dumped stainless steel imports from China and Indonesia will create a healthy environment for Indian producers, especially MSMEs. This will not only support the Make in India vision but will also help attract investment confidence to generate new employment as well as increase revenue. Additionally, a favourable balance of trade will conserve foreign reserve.”
The gravity of the situation can be understood from the fact that by revoking the Trade remedial measures against China and Indonesia, stainless steel imports from these two countries into India during H1 FY22 increased by 172%. Moreover, Indonesia is set to replace India as the second largest stainless-steel producer in the world.