Over 177% increase in stainless steel imports
New Delhi: The first four months of this fiscal year 2021-22 (April-July of fiscal 22), saw a staggering 177% increase in stainless steel imports into the country compared to the average of last year (fiscal year 21), and a 159% increase from the 2016-17 average, the base year before China’s countervailing duty was imposed. The push was fueled by 20-30% non-WTO-compliant subsidies provided to their stainless steel manufacturers by China and Indonesia, which has been proven by the Trade Remedies Directorate in India as well. than their global counterparts.
The subsidies created an imbalance in the Indian and international markets and reduced the competitiveness of Indian products in the domestic industry, causing significant injury and persistent financial strains for local businesses. It also forced the domestic industry to seek redress from the relevant government authorities for the revocation of the countervailing duty suspension on China and the imposition of new countervailing duties on Indonesia.
“The suspension of the anti-subsidy duty on China and the provisional anti-subsidy on Indonesia, announced in the FY22 budget, has had a negative impact on the Indian food industry. ‘stainless steel. This opening of the flat stainless steel market – imports of dumped / subsidized products from China and Chinese investments in Indonesia have provided rich opportunities for Chinese / China-backed exporters. The investigation recommended continuing the protection of rights. However, a sudden change was made in the budget and the negative impact of these decisions became evident from the sudden increase in imports. As a result, Indian companies, especially MSMEs, are languishing, ”said Dr Aruna Sharma, former secretary of the Ministry of Steel.