Cheap imports, dumping hurt India's steel sector: Report

India's steel sector faced significant headwinds due to cheap imports and dumping from major global steel producers during 2023-24 and 2024-25, RBI's latest Bulletin said, as it called for policy support to boost the competitiveness of domestic steel production.

- PRESS TRUST OF INDIA

‘An article published in the Reserve Bank's October Bulletin noted that steel imports have seen a surge, largely driven by lower import prices. This has adversely impacted the domestic steel production.

“The dumping of cheap steel from global producers may pose a risk to the domestic steel production, which can be mitigated through suitable policy measures. The recent initiative to impose the safeguard duty provides insulation against the import dumping,” said the article titled ‘Steel Under Siege: Understanding the Impact of Dumping on India’.

India imported steel products to supplement its consumption demand. The country’s iron and steel imports expanded by 10.7 per cent in the first half of 2024-25 and recorded a contraction in the second half of 2024-25, mainly due to safeguard duties.