Lok Sabha Question No. 2064 (UNSTARRED), answered on 2018-07-30
Subject: Steel Production/Imports
Ministry: STEEL
Asked by: SANJAY SHAMRAO DHOTRE, RAHUL RAMESH SHEWALE, BHARTRUHARI MAHTAB, VASANTHI M., B.V. NAYAK, RAJESH KUMAR DIWAKAR

## STEEL PRODUCTION/IMPORTS

2064.  SHRI SANJAY DHOTRE:

SHRI RAHUL SHEWALE:

SHRI BHARTRUHARI MAHTAB:

SHRIMATI VASANTHI M.:

SHRI B.V. NAIK:

SHRI RAJESH KUMAR DIWAKER:

Will the Minister of STEEL be pleased to state:

(a) the  contribution  of  steel  sector  in  the  Gross  Domestic  Product  (GDP)  of  the country during each of the last three years and the current year;

(b) the  details  of  the  quantum  of  indigenous  production,  demand,  supply  and imports of steel in the country during the said period;

(c) whether  there  is  a  huge  gap  in  the  demand  and  supply  of  steel,  if  so,  the details thereof and the reasons therefor;

(d) whether the imports of steel particularly from China has adversely affected the domestic steel sector and if so, the details thereof;

(e) whether  the  Government  has  received  any  representation  from  various domestic steel manufacturers against surge of steel imports in the country, if so, the details thereof along with the corrective steps taken by the Government to protect the domestic steel industry against the said imports; and

(f) the other steps taken by the Government to boost the steel production in the country?

## ANSWER

## THE MINISTER OF STATE FOR STEEL

(SHRI VISHNU DEO SAI)

(a) The domestic steel industry contributes to 2% (approx) in the nation's Gross Domestic Product (GDP).

(b) Data on production for sale, import, consumption of total finished steel in the country during the last three years and the current financial year is shown below.

| Year                                         | Total Finished Steel (alloy/stainless + non-alloy) (mt)   | Total Finished Steel (alloy/stainless + non-alloy) (mt)   | Total Finished Steel (alloy/stainless + non-alloy) (mt)   |
|----------------------------------------------|-----------------------------------------------------------|-----------------------------------------------------------|-----------------------------------------------------------|
|                                              | Production for sale                                       | Import                                                    | Consumption                                               |
| 2015-16                                      | 90.98                                                     | 11.71                                                     | 81.52                                                     |
| 2016-17                                      | 101.81                                                    | 7.23                                                      | 84.04                                                     |
| 2017-18*                                     | 104.98                                                    | 7.48                                                      | 90.68                                                     |
| April-June, 2018                             | 26.966                                                    | 1.89                                                      | 23.59                                                     |
| Source: JPC; *Provisional; mt=million tonnes | Source: JPC; *Provisional; mt=million tonnes              | Source: JPC; *Provisional; mt=million tonnes              | Source: JPC; *Provisional; mt=million tonnes              |

(c) No, Madam.

(d) Imports from China declined its share in total imports during the current years as compared to same period of last year.  Data on import of key items of non-alloy steel, overall alloy/stainless steel and total finished steel from China to India during the last three years and April-May, 2018 is given below. No adverse affect noticed in past year.

| Import of total finished steel ('000t)   | Import of total finished steel ('000t)   | Import of total finished steel ('000t)   | Import of total finished steel ('000t)   |
|------------------------------------------|------------------------------------------|------------------------------------------|------------------------------------------|
| Period                                   | China                                    | All Total                                | %share of China in Total                 |
| 2015-16                                  | 4125                                     | 11711                                    | 35                                       |
| 2016-17                                  | 2157                                     | 7227                                     | 30                                       |
| 2017-18*                                 | 1931                                     | 7482                                     | 26                                       |
| April-May, 2017*                         | 239                                      | 1062                                     | 23                                       |
| April-May, 2018*                         | 198                                      | 1217                                     | 16                                       |
| %change* YOY                             | -17                                      | 14.6                                     | -                                        |
| Source: JPC;*provisional                 | Source: JPC;*provisional                 | Source: JPC;*provisional                 | Source: JPC;*provisional                 |

(e) Government has not received any representation against surge steel imports in the country.

(f) Steel is a deregulated sector. The Government has taken various measures to promote  steel  sector  like  trade  measures  such  as  anti  dumping  duties,  safeguard duties and notified Quality Control Order thereby making BIS standards mandatory for all  steel products and imports; notified the policy on Domestically Manufactured Iron and Steel Products in Government procurement which facilitates domestic value addition, and notified National Steel Policy, 2017 with a view to encourage long term growth of steel sector.

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