India’s steel and trade ministries are in talks over rising imports, particularly cheap Chinese goods, a government source with direct knowledge of the matter said on Saturday, amid persistent calls for higher tariffs from top producers. “The steel ministry has apprised the commerce ministry on rising imports and industry has sought a probe,” the source said, declining to be identified as discussions are not public.
India is monitoring cheap Chinese imports, the source said, as China continues to be the top exporter of steel to the Asia’s third-largest economy in recent months. India turned net steel importer in the fiscal year that ended in March and the trend continues with its finished steel imports scaling a five-year high in April and May, according to provisional government data.
The surge in imports has hurt domestic steelmakers, who are seeking higher tariffs to level the playing field. The government has already imposed anti-dumping duties on certain steel products from China and other countries, but industry players are seeking more protection.
The talks between the steel and trade ministries are aimed at finding a solution to the rising imports and the impact on the domestic industry. The government is also considering other measures, such as increasing the basic customs duty on steel imports, to protect the domestic industry.
The development comes at a time when India is also discussing trade relations with China, its largest trading partner. India has been seeking greater market access for its goods in China, while also addressing the trade deficit, which has been a major concern for the government.
