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NEW DELHI: Indian Stainless Steel Development Association (ISSDA), representing the domestic stainless steel industry, has urged the government to restore countervailing duty (CVD) on imports from China and Indonesia, to ensure a level playing field for domestic manufacturers.
"In alignment with the National Steel Policy 2017 vision, overall stainless steel capacity of the country need to be increased from 6 million tons to 9 million tons by the year 2030. Sadly, the total capacity utilisation for the domestic stainless steel industry stands at a mere 60%, under pressure of imports. Restoring Countervailing Duty (CVD) against subsidised and dumped stainless steel imports from China and Indonesia will create a healthy environment for Indian producers, especially MSMEs," said KK Pahuja, president, ISSDA.
Stainless steel imports from China and Indonesia surged 172% during H1 FY22, the association said.
Indonesia is also set to replace India as the second largest stainless steel producer in the world.
These countries have been proved to provide subsidies which are not compliant with World Trade Organization norms and most producing nations have imposed anti-dumping/subsidy and safeguard mechanism against China and Indonesia, ISSDA said.
In December, the European Commission disclosed up to 34.3% CVD on stainless steel CR flat products from Indonesia, which will see more imports dumped into India, the association added.
About 30% of domestic stainless steel suppliers comprise MSMEs. The domestic industry has sufficient capacity to meet demand, but for unwarranted imports. Government policy support is necessary to not only reclaim India’s position as the world’s second largest stainless steel producer, but also to enable the next phase of industry's growth in line with the prime minister’s vision of Aatamanirbhar Bharat, ISSDA added.
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