THE INDIAN STEEL INDUSTRY
The steel sector in India is deregulated, with the Government acting as a facilitator. Factors such as global market conditions or demand and supply dynamics influence the steel exports. Additionally, the cost of raw materials like iron ore and coking coal, which are market-linked, also affect the exports.
Data on the value of finished steel export to the European Union during the last five financial years
| Finished Steel Export | |
| Year | Value (Rs Crores) |
| 2019-20 | 10,692 |
| 2020-21 | 14,144 |
| 2021-22 | 32,149 |
| 2022-23 | 22,482 |
| 2023-24 | 29,534 |
| Source: Joint Plant Committee (JPC) | |
The Government regularly monitors the steel industry, including exports, imports, and prices. It had implemented the following measures to support the Indian steel industry:
i) In the Union Budget 2024-25, it reduced the the Basic Customs Duty (BCD) on ferro-nickel and molybdenum ores and concentrates – key raw materials for the steel industry, from 2.5% to nil.
ii) It has extended the BCD exemption on ferrous scrap and specific raw materials for the manufacture of Cold Rolled Grain-Oriented (CRGO) steel. This extension is until 31.03.2026.
iii) It has introduced the Production Linked Incentive (PLI) Scheme for Specialty Steel. It will encourage domestic manufacturing of specialty steel and reduce imports by attracting capital investments. It expects that the scheme will generate an additional investment of INR27,106 crores. Also, it will create a downstream capacity of approximately 24 million tonnes (MT) for specialty steel.
iv) The Domestically Manufactured Iron & Steel Products (DMI&SP) Policy has been implemented to promote the use of ‘Made in India’ steel for government procurement.
Reference: impact of cbam on indian steel industry
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