No threat from cheap imports: Steel minister

Union steel minister Jyotiraditya Scindia said India becoming a net importer of steel between April and November this fiscal year is not a concern for the government, terming the imports a drop in the ocean of total steel consumption in the country.

- Naman Suri & Anu Sharma

"Indian steel production has gone up by 12.9% y-o-y (year-on-year). So, more steel is being produced, but the demand is also much more," he said.

"When you look at the numbers, you are producing 128 million tons (mt) of steel and exporting 6-8mt, effectively using 122mt domestically. And coming in from abroad is 5 mt." India wants to use more of its steel within the country than exporting it, Scindia said.

At the same time, international steel demand remains muted, leading to excess capacity in several countries and attracting imports of the alloy, the minister added.

This comes at a time when domestic players have been lobbying with the government to introduce measures to check alleged dumping of steel in India from markets like China and Vietnam.

"The rise in imports may not be a big concern now, but can become a bigger concern if this continues to grow," a steel industry executive said on condition of anonymity.