“The
steel ministry has recommended 10% import duty on the alloy in the forthcoming
Budget to protect the interest of the domestic industry,” said sources.
“The marginal decline in
imports at 5.59 million tonne (mt) during the April-January period of the
current fiscal does not truly reflect the ground reality,” said sources. The domestic consumption grew
by 5.5% to 57.24 mt in the same period.
“The Steel Ministry
has recommended doubling of import duty to 10% on steel in the Budget in view
of the growing threat of Chinese imports into India. It is aimed at protecting
the domestic industry,” the sources in the steel ministry said.
“The threat of
growing exports to India from countries like China, Japan, Korea, Russia and
Brazil is looming large given by the current global economic scenario,” they stated.
China, which accounts for nearly half of the global steel production,
stimulates exports by giving an export incentive of 9% on various steel
products.
The hike in import duty would also help the government to generate additional
revenue.
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