STOCK MARKET BSE NSE

ISSDA urges Centre to protect stainless steel MSMEs, curb imports

Expressing concern over the scenario, ISSDA said the decision will distort the domestic market by flooding it with subsidised stainless steel from China and Indonesia.

Published: 26th February 2021 10:25 AM  |   Last Updated: 26th February 2021 10:25 AM   |  A+A-

For representational purpose. (Photo | Pixabay)

By Express News Service

CHENNAI: Indian Stainless Steel Development Association (ISSDA), the apex body of steel manufacturers, has urged the government to reconsider its decision of temporary revocation of import duties on steel, as announced in this year’s Budget, as it will adversely affect the domestic industry, leaving many MSMEs to the verge of bankruptcy.  

Expressing concern over the scenario, ISSDA said the decision will distort the domestic market by flooding it with subsidised stainless steel from China and Indonesia.

“A potential market brimming with unregulated and cheap imports of Chinese stainless-steel goods is 
expected to make MSME players go bankrupt or turn them into traders. The demand generated by a growth-oriented budget may be captured by cheap imports dumped by Chinese companies, in and out of China,” said ISSDA President K K Pahuja.

The government has reversed six trade remedies out of which three relate to stainless steel, which is just three per cent of the overall steel industry. It has, thus, disproportionately impacted stainless steel, including its MSME sector, and considerably dipped the market sentiment, added Pahuja.

The MSME sector now constitutes about 35 per cent of the domestic stainless steel industry. The installed capacity for manufacturing stainless steel in the MSME sector is 15 lakh tonnes, with less than 50 per cent being utilised. The move is also poised to drift away from the Make in India stance of the government, while leaving the domestic industry at the mercy of foreign players.



Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp