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.