New Delhi: [Indian Stainless Steel Development Association] (ISSDA), the apex organization representing the domestic stainless-steel industry, has urged the Government of India to restore Countervailing Duty (CVD) against dumped stainless steel imports from China and Indonesia.
Making representation to the highest authorities, including the Finance Ministry and Ministry of Steel, ISSDA has made this plea ahead of the upcoming Union Budget in order to enable a level playing field for the Indian manufacturers and MSMEs.
In the representation, Mr. KK Pahuja, President, ISSDA said, “Making strides across new applications, stainless steel has proved to be essential for the development and growth of our country. In alignment with the National Steel Policy 2017 vision, the overall stainless steel capacity of the country needs to be increased from 6 million tons to 9 million tons by the year 2030. Sadly, the total capacity utilization for the domestic stainless-steel industry stands at a mere 60%, under the pressure of imports.
Restoring Countervailing Duty (CVD) against subsidized and dumped stainless steel imports from China and Indonesia will create a healthy environment for Indian producers, especially MSMEs. This will not only support the Make in India vision but will also help attract investment confidence to generate new employment as well as increase revenue. Additionally, a favorable balance of trade will conserve foreign reserve.”
The gravity of the situation can be understood from the fact that by revoking the Trade remedial measures against China and Indonesia, stainless steel imports from these two countries into India during H1 FY22 increased by 172%. Moreover, Indonesia is set to replace India as the second largest stainless-steel producer in the world.
These countries have been proved to provide non- WTO complying subsidies and most stainless-steel producing nations have imposed anti-dumping/subsidy and safeguard mechanisms against China and Indonesia. Even, China has imposed ADD measures on Indonesia. In Dec 2021, European Commission disclosed up to 34.3% CVD on Stainless Steel CR flat products from Indonesia. This will further nudge these countries to dump more in India as most of the stainless steel-producing countries have protected their domestic producers. India is the only attractive and open market available to China & Indonesia.
Indian Stainless-steel supply ecosystem has a unique structure wherein 30% of producers are operating in the MSME sector. The domestic industry has sufficient capacity to meet the demand, however, unwarranted imports are hindering the industry to realize its true potential. Government policy support is necessary to not only reclaim India’s position as the world’s second-largest stainless-steel producer but also enable the next phase of industry growth in line with the Prime Minister’s vision of Atamanirbhar India.
Established in 1989 by leading stainless steel producers, the Indian Stainless Steel Development Association (ISSDA) was formed with the explicit objective of diversifying the applications of stainless steel and increasing usage volumes in the country. At the time of inception of ISSDA, the main visible application in daily life was essentially household kitchenware, which has now diversified significantly. Through the focused efforts of ISSDA and its member companies, the widespread and visible use of stainless steel in different walks of life is all too evident, especially in the Architecture, Building & Construction (ABC) and the Automotive, Railway and Transportation (ART) sectors. The technical strength of ISSDA is derived from its close association with the Nickel Institute, the International Stainless Steel Forum (ISSF), and close collaboration with more than 20 stainless steel development associations around the world. As a result of these efforts, India has now emerged as the second-largest stainless steel producer and consumer in the world.