A sharp rise in steel imports has put the domestic steel industry in agony. During June-July 2012, steel imports rose 40% to 1.471 MT against imports of 1.01 MT in the same period last year. Flat steel products used in cars and consumer durables accounted for 63% of total imports.
Despite an average demand growth of 8-9% a year, low capacity addition in domestic steel sector, where a number of large projects remain stuck, seems to have led to the rise in imports. India, the world's 4th largest steel producer, is now a net importer of steel.
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