Lok Sabha Question No. 3495 (UNSTARRED), answered on 2024-12-17
Subject: Imports of Steel
Ministry: STEEL
Asked by: Shri Eatala Rajender, Smt. D K Aruna, Shri Suresh Kumar Shetkar

## GOVERNMENT OF INDIA MINISTRY OF STEEL

## LOK SABHA

## UNSTARRED QUESTION NO. 3495 FOR ANSWER ON 17.12.2024

## IMPORTS OF STEEL

3495.   SHRI SURESH KUMAR SHETKAR:

SMT. D K ARUNA:

SHRI EATALA RAJENDER:

Will the Minister of STEEL be pleased to state:

- (a)  whether it  is  a  fact  that  about  62%  of steel  imports  are  landing from  Free  Trade Agreement (FTA) countries at nil duty and any duty hike will not have any impact on these  shipments  and  also  the  Government  acknowledging  that  there  is  a  genuine problem of supply glut due to increased imports and if so, the details thereof as on date, trade-wise;
- (b) whether the domestic steel players raising concerns over rising cheap steel imports from selected nations, affecting their competitiveness and duty like ineffective for most steel imports from FTA nations; and
- (c) if so the details thereof comparatively with other countries as on date and corrective steps being taken/results yielded and if not, the reasons therefor?

## ANSWER

THE MINISTER OF STATE IN THE      (SHRI BHUPATHIRAJU SRINIVASA VARMA) MINISTRY OF STEEL

(a)to(c): Data  on  import  of  finished  steel  from  Free  Trade  Agreement  (FTA) countries, non-FTA countries and overall import during last three years and current year i.e., April-November 2024 (prov.) is given below and indicates that share of FTA countries in overall import was 60% in FY 2023-24 and 63% during the current year i.e., April-November 2024-25 (prov.) :-

| Import of Finished Steel Quantity (in million tonnes)   | Import of Finished Steel Quantity (in million tonnes)   | Import of Finished Steel Quantity (in million tonnes)   | Import of Finished Steel Quantity (in million tonnes)   | Import of Finished Steel Quantity (in million tonnes)   |
|---------------------------------------------------------|---------------------------------------------------------|---------------------------------------------------------|---------------------------------------------------------|---------------------------------------------------------|
| Country Group                                           | 2021-22                                                 | 2022-23                                                 | 2023-24                                                 | April-November 2024-25*                                 |
| A. FTA                                                  | 3.07                                                    | 3.69                                                    | 5.02                                                    | 4.08                                                    |
| B. NON-FTA                                              | 1.60                                                    | 2.33                                                    | 3.30                                                    | 2.43                                                    |
| TOTAL (A+B)                                             | 4.67                                                    | 6.02                                                    | 8.32                                                    | 6.51                                                    |
| Share of FTA Countries                                  | 66%                                                     | 61%                                                     | 60%                                                     | 63%                                                     |
| Source: Joint Plant Committee (JPC); *provisional;      | Source: Joint Plant Committee (JPC); *provisional;      | Source: Joint Plant Committee (JPC); *provisional;      | Source: Joint Plant Committee (JPC); *provisional;      | Source: Joint Plant Committee (JPC); *provisional;      |

Details of production and consumption of finished steel in the country during the last three years is shown below:-

| Year        | Finished Steel (in million tonnes)   | Finished Steel (in million tonnes)   |
|-------------|--------------------------------------|--------------------------------------|
|             | Production                           | Consumption                          |
| 2021-22     | 113.60                               | 105.75                               |
| 2022-23     | 123.20                               | 119.89                               |
| 2023-24     | 139.15                               | 136.29                               |
| Source: JPC | Source: JPC                          | Source: JPC                          |

The  Government  has  taken  the  following  steps  to  support  the  domestic  steel Industry: -

- i. Implementation of Domestically Manufactured Iron & Steel Products (DMI&SP) Policy for promoting 'Made in India' steel for Government procurement.
- ii. Implementation of the Production Linked Incentive (PLI) Scheme for Specialty Steel to promote the manufacturing of 'Specialty Steel' within the country and reduce  imports  by  attracting  capital  investments.  The  anticipated  additional investment under the PLI Scheme for Specialty Steel is Rs. 27,106 crores with downstream capacity creation of around 24 million tonnes (MT) for specialty steel.
- iii. In the Union Budget 2024-25, Basic Customs Duty (BCD) has been reduced from 2.5% to Nil on Ferro-Nickel and Molybdenum ores and concentrates which are raw materials for steel industry and BCD exemption on Ferrous Scrap and specified raw material for manufacture of CRGO steel has been continued upto 31.03.2026.
- iv. Revamping of Steel Import Monitoring System (SIMS) 2.0 for more effective monitoring of imports to address the concerns of domestic steel industry.
- v. Introduction  of  Steel  Quality  Control  Order  thereby  stopping  import  of  substandard/ defective steel to ensure the availability of quality steel to the industry, users and public at large. As per the order, it ensured that only quality steels conforming to the relevant BIS standards is made available to the end users. As on date, 151 Indian Standards stands notified under the Quality Control Order covering carbon steel, alloy steel and stainless steel.

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